The Australian biotech company is spending $16.4 billion to take over the Swiss renal disease and iron deficiency-focused giant.
At the time of writing, the CSL share price is $281.43, 2.8% higher than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is also up today, having gained 0.35%.
Without further ado, here are all the details on CSL’s massive SPP.
CSL share price gains amid SPP opening
CSL is raising cash through an SPP that could see new securities in the company on offer for $273 – or less – each.
The company stamped the $273 price tag on its shares during last week’s $6.3 billion placement. It also represents about a 3% discount on the current CSL share price.
Though, if the company’s share price falls between now and 7 February – when the SPP is expected to close – the new shares will be priced at a 2% discount to CSL’s 5-day volume-weighted average price.
Those who held CSL shares as of 13 December may be eligible to apply for between $2,500 and $30,000 worth of new shares. Doing so will allow them to dodge broker and transaction costs.
However, CSL might choose to scale back its offer. If it does, it will make sure the scaled-back amount will see those who applied for new shares at least retaining their percentage shareholding in the company.
It also retains the right to extend or close the SPP early without notice.
The new shares are expected to be issued on 14 February and to begin trading on the ASX the following day.
The plan is only open to Australian and New Zealand shareholders who are outside of the United States.