CREVE COEUR (dpa-AFX) - German conglomerate Bayer AG (BAYZF.PK, BAYRY.PK, BYR.L) said Sunday that it resolved capital increase with subscription rights against cash contributions in the amount of 6.0 billion euros to finance the acquisition of Monsanto.
Bayer AG has resolved to execute a capital increase out of authorized capital against cash contributions and with subscription rights for existing Bayer stockholders. To this end, Bayer is to issue about 74.60 million new registered shares with an entitlement to dividends as of January 1, 2018.
The new shares are to be offered to Bayer stockholders at a price of 81.00 euros per new share by way of indirect subscription rights. Stockholders can acquire 2 new shares for every 23 Bayer shares they hold. As a result, Bayer expects to generate gross proceeds of 6.0 billion euros from the capital increase.
The company said it intends to use the net proceeds from this transaction to repay amounts drawn under the syndicated loan facilities agreement for the acquisition of Monsanto.
Subject to the approval of the prospectus by Germany's Financial Supervisory Authority or BaFin and to the publication of the approved prospectus, thesubscription period for the capital increase with subscription rights is expected to start on June 6, 2018, and is scheduled to end on June 19, 2018 (both dates inclusive).
Subject to the approval and publication of the prospectus, the subscription rights for the new shares will be traded on the regulated market (Xetra and Xetra Frankfurt Specialist) of the Frankfurt Stock Exchange in the period from June 6, 2018, up to and including June 15, 2018 (around 12:00 midday CEST).
It is anticipated that the execution of the capital increase will be entered into the Commercial Register of the Local Court of Cologne by June 20, 2018, and that trading and the inclusion of the new shares in the existing quotation on the German stock exchanges will take place on or around June 22, 2018.
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