Boehringer sells equity stake in Hikma

Shares of London-listed generics drugmaker Hikma Pharmaceuticals (LSE: HIK) were down 7.38% at £22.97 by early afternoon today, after German family-owned pharma major Boehringer Ingelheim revealed it was selling its equity stake in the generics and injectables company.

Boehringer said it has sold around 27.2 million ordinary shares in the share capital of Hikma, by way of an accelerated bookbuild at a price of £23.00 per ordinary share (the Placing Price), raising gross proceeds of approximately £625 million ($778 million).

Boehringer has concurrently entered into arrangements pursuant to which Hikma will buy back approximately 12.8 million ordinary shares currently owned by Boehringer Ingelheim (the Buy Back). The purchase price for each of the Buy Back Shares is equal to the Placing Price. Hikma will receive a commitment fee from Boehringer of 2% of the aggregate value of the Buy Back Shares acquired at the Buy Back Price. Citigroup Global Markets Limited is acting as riskless principal for the purpose of the Buy Back.