
Baxter to cut stake in Baxalta
pharmafile | March 17, 2016 | News story | Business Services, Sales and Marketing |Â Â Baxalta, Shares, Stake sale, baxterÂ
Baxalta Inc (NYSE: BXLT) said former parent company Baxter International (NYSE: BAX) is set to cut its stake in the company to 5.1% from 13.8%.
US-based Baxter will exchange about 59.4 million Baxalta shares for Baxter debt held by four banks that are underwriting a public offering of Baxalta stock.
The stock offering is valued at about $2.26 billion, will be for over 63 million shares in Baxalta at the price of $37.75 per share.
In January, Ireland-based pharma major Shire agreed to buy Baxalta for about $32 billion, following a six-month wooing. The pharmaceutical sector witnessed a rapid consolidation driven by hectic merger and acquisition activity through 2015.
In January, Baxter lowered its stake in the Baxalta from 19.4%.
Baxalta is not selling any shares and neither will it receive any proceeds from the stake sale.
Baxalta has a portfolio of rare disease drugs in late stage trials.
Anjali Shukla
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