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.
MM is long CSL and expects to participate in the SPP
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