Boehringer Ingelheim To Exit Investment In Hikma Pharmaceuticals

(Alliance News) - German pharmaceutical company Boehringer Ingelheim Invest GmbH intends to sell ...

Alliance News 22 June, 2020 | 5:48PM
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(Alliance News) - German pharmaceutical company Boehringer Ingelheim Invest GmbH intends to sell up to 28 million shares in Hikma Pharmaceuticals PLC, JPMorgan Securities PLC said on Monday.

The Boehringer shares will be offered via an accelerated bookbuild to institutional investors.

Concurrently, Hikma has committed to buy back up to GBP295 million in shares from Boehringer. The purchase price for the buyback shares will be equal to the sale price for the placing shares.

"Hikma has separately today entered into an agreement with Boehringer Ingelheim pursuant to which Hikma will receive a commitment fee of 2% of the aggregate value of the buy back shares acquired at the buy back price," Monday's release said.

Shares in Hikma closed down 1.0% at 2,480.00p in London on Monday.

Boehringer currently owns 40 million ordinary shares in Hikma, representing a 16% stake. Following the successful completion of the placing and the buyback, Boehringer would no longer hold any shares in Hikma.

In its own statement, Hikma said: "The shares being sold by Boehringer Ingelheim were issued by Hikma as part of the consideration for the acquisition of Roxane Laboratories in February 2016. The buy back demonstrates the board's confidence in Hikma's future prospects. Since its initial public offering in 2005, Hikma has delivered a total shareholder return of approximately 926%, exceeding the FTSE 100 total shareholder return of approximately 105%."

Boehringer Ingelheim has engaged Citi and JP Morgan Securities as bookrunners in connection with the placing. Hikma will not receive any proceeds from the placing.

By Lucy Heming; lucyheming@alliancenews.com

Copyright 2020 Alliance News Limited. All Rights Reserved.

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
Hikma Pharmaceuticals PLC 2,105.00 GBX -1.73

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