Bellevue GroupAG said April 11 that it will offer up to 2,991,428 new registeredshares with a nominal value of 10 Swiss centimes per share to finance theacquisition ofStarCapital Ltd. and maintain the group's strategic flexibility.
The offer price was set at CHF11 per new share, reflecting a24.1% discount to the company's April 8 closing share price. The expected grossproceeds from the capital increase amount to CHF32.9 million.
Bellevue Group shareholders will receive 1 subscriptionright for every registered share held after market close April 11. The companysaid 7 subscription rights will allow shareholders to purchase 2 new registeredshares against payment of the offer price, subject to certain restrictions.
The exercise period for the subscription rights is expectedto run from April 12 to April 21, with subscription rights to be traded on theSIX Swiss Exchange between April 12 and April 19. Bellevue Group said coreshareholders support the proposed capital increase and have expressed intentionto exercise a substantial amount of their subscription rights.
The new registered shares are expected to be listed and tradedon the SIX Swiss Exchange on April 26. Offered shares that were not exercisedduring the exercise period may be placed for the account of the group at theoffer price.
Bellevue Group reported first-quarter operating profit ofCHF1.3 million, down from about CHF4.4 million in the same period in 2015, citingthe declining equity markets environment. The group expects an improvement forthe remainder of 2016, based on recovering equity markets since March. Thegroup added that it expects the acquisition of StarCapital to be immediatelyvalue-accretive for all shareholders.