Bayer Authorizes EUR6 Billion Capital Increase for Monsanto Takeover

   By Donato Paolo Mancini 
 

Bayer AG (BAYN.XE) said Sunday that it will raise 6 billion euros ($6.99 billion) in cash via a share issuance to finance its $66 billion takeover of Monsanto Co. (MON).

Through the increase, shareholders will be able to acquire two new shares for every 23 shares they hold for EUR81 each. The company said it will issues 75 million new shares and expects gross proceeds from the capital increase to be EUR6 billion.

"It is a significant component of the financing for the acquisition of Monsanto and the final equity measure associated with this undertaking," said Werner Baumann, chairman of Bayer's management board.

Bayer said the offering is based on an agreement with a consortium of 20 banks, including Bank of America Merrill Lynch and Credit Suisse.

The company has previously said it expects to close the Monsanto acquisition in the second quarter of 2018, after the deal was granted antitrust approval last week by the U.S. Justice Department.

Bayer said it is also planning senior bond issuances in both U.S. dollars and euros, with a total expected volume of up to EUR20 billion.

Write to Donato Paolo Mancini at [e-mail]

(END) Dow Jones Newswires

June 04, 2018 01:44 ET (05:44 GMT)

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