The world's largest pharmaceutical company Pfizer
Inc.(NYSE:PFE) plans to raise $100 million via public offering of shares in its
animal health unit, to pay down debt.
The company said in a regulatory filing with the
Securities and Exchange Commission that it would exchange Class A common shares
to debt holders who would then sell the stock. The shares being offered
represent the company's 20 percent stakeholding in the unit which is called
Zoetis.
Should
Investors Apply For This IPO? Find Out Here
The proceeds of the share sale will not go Zoetis or
Pfizer, which will retain its controlling interest in the company through class
B shares. The offering is expected to be done in the first half of 2013, it
said in the filing.
Pfizer has been restructuring its businesses for some
time now to streamlines its structure and to enhance shareholder value. Hiving
off or selling non-pharma businesses is part of this strategy. The company had
said in June that it planned to separate its animal
health unit into a standalone company as it focused more closely on its core
pharmaceuticals business
Last spring, Pfizer agreed to sell its infant
nutrition business for $11.85 billion to Swiss food and drink giant Nestle SA.
In the third quarter of 2011, Pfizer sold its Capsugel capsule-making business
to private equity firm Kohlberg Kravis Robert & Co. for $2.38 billion in
cash.
How Should
Investors Trade PFE Now, Get Our Free Trend Analysis
Zoetis sells products such as Convenia, an antibiotic
for dogs and cats, an anti-flea product called Revolution and a canine cancer
drug called Palladia. It posted $4.2 billion in
revenue last year and has more than 9,000 employees
Shares in Pfizer were trading down 0.8 percent at
$23.75 each.
No comments:
Post a Comment