Sartorius Stedim Biotech, the France-based laboratory-instrument manufacturer, has recently completed a capital increase amounting to 1.2 billion euros ($1.29 billion). As a result, the company's shares experienced a decline on Wednesday.
At 0843 GMT, Sartorius Stedim's shares were down 3%, trading at EUR243.50. Despite this drop, the current price remains above the sale price of the new shares at EUR233. Notably, the stock has seen a 31% increase over the past three months.
Sartorius Stedim announced that it sold 5.2 million shares to institutional investors. The majority of the proceeds from this capital increase will be utilized to reduce the company's debt.
Involvement of Sartorius AG
The German parent company, Sartorius AG, actively participated in the capital increase by acquiring new shares valued at around EUR400 million. Following this transaction, Sartorius's stake in its subsidiary will decrease from 73.6% to 71.5%.
Treasury Share Sale
In addition to the aforementioned capital increase, Sartorius separately raised EUR200 million through the sale of treasury shares. These shares were sold at EUR326.00 each, at a discount to the closing price of EUR339.50 on Tuesday. As a result, Sartorius shares experienced a 1.3% decline and were trading at EUR335.10.
Positive Impact on Debt and Overall Outlook
The completion of Sartorius Stedim's capital increase has helped alleviate the company's debt burden and is regarded as a significant event by Jefferies analysts.
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