Shire announces equity financing plan

Global company Shire has confirmed that it is looking to raise $800 million (408.6 million pounds) in cash funds by offering new shares to international investors.

The equity issue is intended to part finance the firm’s planned acquisition of Virginia-based New River Pharmaceuticals (NRPH) and will take place over a 48-hour period from the announcement.

Using the closing share price from February 19th of 10.75 pounds on the London stock market, about 38 million new ordinary shares will need to be issued to institutional investors across the globe in order to raise the required funds.

“The new ordinary shares to be issued in the private placement will. . .be credited as fully paid and will rank pari passu in all respects with the existing issued ordinary shares of Shire,” commented the company, which has head offices in the UK and Philadelphia in the US.

Representing an estimated 7.5 per cent of the total ordinary share capital of Shire, the equity issue would provide investors with standard shareholder rights such as the receiving of dividends.

NRPH is currently working on the development of amphetamine and opioid derivatives which it hopes will deliver alternative remedies for a range of conditions and is also testing a drug to be used in the treatment of primary hypothyroidism.