Novartis: Benefit from the Roche-dividend-heavy rain 24.08.2016
Pharma
Novartis is serious about selling its Roche shares. Big investors were invited to make an offer. Investors expect that the sale can be completed at any time
The in spring became known sales of Roche's participation by Novartis is prepared. According to research by the "commercial paper" have been invited in the past few months, make an offer for the purchase of Roche shares large investors. In investor circles, it is believed that the sale can be initiated and completed in a few weeks at any time.
The sale of more than 13 billion francs serious position via a book forming method. It bids on desired volumes and prices to be obtained by investors. Then it comes to the allocation of shares.
Heavy rain million dividend
An accelerated book-forming method is not an option due to the size of the package. An investment banker estimates the liquidity in Roche securities to one billion francs - a fraction of what brings the package on the scale.
When the sale is completed, is unclear. In investor circles, it is believed that it is triggered when an alternative investment opportunity exists. The bar is high. The Roche-shareholding led Novartis last year $ 429 million in dividends, a, in the previous year it had been $ 473 million. That would upload a possible new acquisition only again.
Higher debt possible
At the same time, Novartis is apparently willing to temporarily accept a higher debt in purchase, a larger acquisition opportunity should arise. The company had expressed to the effect in recent weeks, it is stated in the investment community. Novartis is currently in debt of 22 billion dollars. The company has an AA rating.
Novartis confirms the information on request, but notes that it was "purely hypothetical" and does not refer & A projects in a specific M. The M & A strategy remains unchanged. Novartis will continue to draw acquisitions in the order 2-5 billion dollars whereas "to strengthen the innovation in our leading business units," as the press office writes.
Published by: Swiss News
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