Siemens Healthineers To Raise EUR 2.3 Bln To Fund Varian Medical Systems Acquisition

(RTTNews) - Siemens Healthineers said it will raise 2.3 billion euros through selling new shares. The new shares will be offered for purchase exclusively to institutional investors in a private placement by way of an accelerated bookbuilding process.

The new shares will carry dividend rights as from October 1, 2020.

Admission of the new shares for trading in the sub-segment of the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange is expected to take place without a prospectus on March 26, 2021. Trading is expected to commence on March 30, 2021.

It is intended to include the new shares in the existing listing of the company's shares. The delivery of the new shares is scheduled for March 31, 2021.

The company already received demand from a long only anchor investor for 16 to 17% of the targeted offer size at the current market price.

Siemens Finance has provided Siemens Healthineers with a bridge facility to finance the purchase price for the planned acquisition of Varian Medical Systems. The net proceeds from the capital increase shall be used to replace a portion of the amount remaining available under such bridge facility which has been partly replaced by the first capital increase in September 2020 and most recently by way of USD term loan facilities with different tenors.

In August 2020, Siemens Healthineers agreed to acquire all outstanding shares of Varian Medical Systems Inc. (VAR) for $177.50 per share in cash, valuing the company at $16.4 billion.