Hmmm Getinge plans guaranteed rights issue of approximately SEK 4 billion
Getinge is planning a new share issue of approximately SEK 4 billion to strengthen the Group’s balance sheet by reducing debt and thereby creating greater scope for action. Getinge’s Board of Directors will propose that an Extraordinary General Meeting authorizes the Board to resolve on a new share issue with preferential rights for Getinge’s shareholders. The entire rights issue is covered by a subscription and guarantee undertaking from Carl Bennet AB.
“Getinge is a strong company with healthy cash flows that could be used to strengthen the balance sheet. However, we want to be able to act faster to create greater scope for action, which is why I am guaranteeing the entire new share issue,” says Carl Bennet, Chairman of the Board of Getinge AB.
As previously announced, the Getinge Board is preparing a proposal on a structural change under which the Group will be divided into two businesses, Getinge and Arjo, to give each the best possible conditions for developing and realizing their potential. The work on the planned spin-off is proceeding according to the previously announced plan, and the final proposal is intended to be presented for a resolution at an Extraordinary General Meeting to be held at a later date.
Getinge’s Board of Directors acknowledges high potential in the organic and acquisition-driven agenda of both businesses. To ensure that the businesses have the capacity and readiness for capitalizing on development opportunities also in the short term, the Getinge Board proposes strengthening the capital structure on the basis of a new share issue with preferential rights for the company’s shareholders.
“Lower debt levels will give us financial strength and create favorable conditions for the operations going forward,” says Mattias Perjos, President & CEO of Getinge. “At the same time, we are continuing our efficiency-enhancement program with full speed.”
Guarantee and subscription undertaking
Getinge’s principal owner, Carl Bennet AB, representing 18.1% of the share capital and 48.9% of the number of votes in Getinge, has undertaken to vote in favor of and subscribe for its portion of the new share issue. Furthermore, in an agreement with Getinge, Carl Bennet AB has undertaken to subscribe for the shares that potentially are not subscribed and paid for by the remaining shareholders.
The Fourth Swedish National Pension Fund has expressed support for the right issue and has the intention to subscribe for its portion.
Preliminary timetable
An Extraordinary General Meeting is scheduled to take place in August 2017 to resolve to authorize the Board to resolve on the new share issue. A more detailed timetable will be presented over the next month.
Advisors
Getinge has appointed SEB Corporate Finance as financial advisor and Mannheimer Swartling as legal advisor in the rights issue.
This information will be followed by a conference call at 1:00 p.m. CET on June 14, led by President & CEO Mattias Perjos and CFO Reinhard Mayer