July 06, 2023 (MLN): Searle Company Limited (PSX: SEARL) has issued the right share-offer documents for its existing shareholders, the company’s latest filing on PSX revealed.
“The company shall issue 121.42 million shares at a price of Rs35 per share, aggregating to Rs4.25 billion,” the notice reads.
The face value of the share is Rs10.
The notice further states the right issue is being carried out at a premium, considering the current market price of the company, the premium charged over the par value is justified and is in line with market practice.
In fact, the same constitutes a 34.14% discount on the last 3 months (from the date of the decision of the Board to carry out the Issue) average trading share price.
The principal purpose of the issue is to expand its product portfolio by the addition of intravenous products through the acquisition of 100% shareholding of an associated company Searle IV, as a running company, at a cost price of Rs3.5bn.
Moreover, the remaining funds worth Rs750m are to be utilized for the repayment of the debt as the company also wants to reduce current debt levels and favorably improve its capital structure by reducing leverage.
