Sartorius Stedim Biotech Shares Fall After Capital Increase
By Nina Kienle
Sartorius Stedim Biotech shares dropped Wednesday after the France-based laboratory-instrument manufacturer completed a capital increase of 1.2 billion euros ($1.29 billion).
At 0843 GMT, shares were down 3% at EUR243.50, above the price at which the company sold its new shares, EUR233. The stock has climbed 31% over the last three months.
Sartorius Stedim said it sold 5.2 million shares to institutional investors and that it will use most of the proceeds to reduce debt.
German parent company Sartorius AG participated in Sartorius Stedim's capital increase by acquiring new shares valued at around EUR400 million. Following the capital increase, Sartorius's stake in its subsidiary will be reduced to 71.5% from 73.6%.
Sartorius separately raised EUR200 million by selling treasury shares at EUR326.00 each, a discount to its closing price of EUR339.50 on Tuesday. Sartorius shares traded 1.3% lower at EUR335.10.
Sartorius Stedim's capital increase eases the debt burden on the company and acts as a clearing event, Jefferies analysts said.
Write to Nina Kienle at nina.kienle@wsj.com
(END) Dow Jones Newswires
February 07, 2024 04:08 ET (09:08 GMT)
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