This time last week we wrote:
“CSL is currently in a trading halt after buying Swiss Vifor Pharma Group for $16.4bn as it backs ageing and obesity to remain integral problems for society moving into the next decade. The acquisition is being funded by a $6.3bn share placement, a $750m SPP and cash, debt facility etc. While we don’t like the direction the world is moving with ever rising cases of Diabetes, heart and kidney disease we do like the business move by CSL with Vifor – the Swiss company already enjoyed revenue over the last 12-months well in excess of $2.6bn. We are waiting on the terms of the SPP but my best guess is a discount in the 5-7% range which will see MM press the “add” button”
CSL rallied almost 5% yesterday a few days after successfully placing the huge line at $273, the markets basically “long” and is already up 5.1%, this now feels like a classic stock where sellers will take a vacation into 2022 making their positions look good and potentially send the stock back above $300.
MM is long CSL and expects to participate in the SPP
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