As subscribers know CSL has embarked on a mammoth capital raise to fund its $16.4bn purchase of Swiss company Vifor – a deal MM likes. The combined efforts of Bank of America and Goldman Sachs have managed to cover the required equity raise somewhere between $273-75, a decent discount to the stocks last price as the sheer magnitude of the raise pushed the price lower than some hoped – CSL resumes trading today and our best guess is a 5% dip down towards the $280 region.
The $750m share purchase plan (SPP) is likely to finish in February and we believe it should provide excellent discounted buying opportunity into this healthcare giant – we still await details.
The question we raise today is will fund managers be selling other Healthcare Sector names to fund their allocations into CSL and if so how should we invest accordingly.
MM expects it will take up CSL in the SPP
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