Bayer Announces Placement Of Elanco Shares For $1.6 Bln

(RTTNews) - Bayer (BAYZF.PK, BAYRY.PK, BYR.L) said that it has placed 54.5 million shares of Elanco Animal Health at a price of $30.25 per share.

Bayer said it will receive gross proceeds of about $1.649 billion. Bayer has granted the underwriters a 30-day option to purchase up to an additional 8.175 million Elanco shares on the same terms and conditions.

Elanco is not selling any shares and will not receive any proceeds from the proposed offering.

Bayer had received 72.9 million Elanco shares, in connection with the completion of Bayer's sale of its Animal Health business unit to Elanco. It represents approximately 15.5 percent of Elanco's outstanding shares.

As previously indicated, Bayer plans to divest the remaining stake in Elanco in due course.