German healthcare group Fresenius SE & Co KGaA (ETR:FRE) said its management and supervisory boards had decided to raise about EUR1bn (USD1.3bn) via the placement of 13.8m new shares with institutional investors to help finance its planned EUR3.1bn buy of domestic hospital operator Rhoen-Klinikum AG (ETR:RHK).
The Else Kroner-Fresenius-Foundation will participate in the capital hike with at least EUR90m, Fresenius said.
The accelerated bookbuilt is being run by Deutsche Bank AG (ETR:DBK), JPMorgan Chase & Co (NYSE:JPM) and Societe Generale SA (EPA:GLE).
Fresenius announced on 26 April plans to launch a EUR22.50 a share voluntary public takeover offer in cash for Rhoen-Klinikum in a move to boost its hospital business.
It said then it would finance the deal with a syndicated loan, a bond issue and equity instruments.
The deal will combine Fresenius’ Helios with Rhoen-Klinikum to create the largest private hospital operator in Germany with around EUR6bn in annual revenues and significant cost and growth synergies, the buyer said.
The offer is subject to an acceptance level of 90% and regulatory clearance.
The buyer said it would publish the detailed offer documents in the second half of May, with the hope of closing the transaction in the third quarter of 2012.
Rhoen-Klinikum, running 53 hospitals and 39 healthcare centres, reported EUR2.6bn in sales and a net income of EUR161m last year.
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