ConvaTec Investors Rake In $1.2 Billion Via Stake Sale

This article was originally published here

Private equity groups Nordic Capital
and Avista raised gross proceeds of 975 million pounds ($1.21
billion) through the sale of an about 19 percent stake in
British medical technology giant ConvaTec Group Plc,
one of the joint bookrunner for the placing said.

The investors had sold 375 million shares at 260 pence per
share, after the size of the placing was increased from 300
million shares due to strong investor demand, bookrunner UBS Ltd
said in a statement on Wednesday.

Separately, the investors also sold 389 million shares, or a
19.95 percent stake, to Novo A/S, the parent company behind the
world’s largest insulin maker Novo Nordisk, for about
1.012 billion pounds.

On completion of the transaction, Kasim Kutay, CEO of Novo
A/S, will join ConvaTec’s board, Novo said separately.

ConvaTec, which focuses on the management of chronic
conditions, was founded in 1978 as a division of Bristol Myers
Squibb and became a standalone company when Nordic Capital and
Avista acquired it in 2008.

Shares in the company were up 1.6 percent at 273.2 pence at
0733 GMT, making it the third top gainer on London’s FTSE 100
index. The firm joined the index after floating at a
price of 225 pence in October.

Following the placing, Nordic Capital will own about 314
million ConvaTec shares, or an about 16.10 percent stake, while
Avista will own roughly 137 million shares, or an about 7.03
percent stake.

ConvaTec would not get any proceeds from the placing, for
which Goldman Sachs International, Merrill Lynch International
and UBS acted as joint bookrunners.

Earlier this month, the company said it was well positioned
for the year ahead after reporting an 8 percent increase in
annual operating profit for last year.
($1 = 0.8070 pounds)
(Reporting by Esha Vaish in Bengaluru; Editing by Sunil Nair)

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