Swiss flavours and fragrances group Givaudan said it plans to raise around CHF420m (US$390m) in a rights issue in a bid to reduce its net debt.
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The company’s board of directors today (11 June) announced an increase in the company’s share capital through the issuance of 999,624 fully paid-in registered shares from authorised capital.
Existing shareholders will get rights to buy two new shares for every 15 shares held.
“This is intended to create operational flexibility and to improve the company’s capital structure,” the company said.
The company said it will strengthen its flexibility over the medium term to pursue strategies which are intended to drive future growth and profitability.
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By GlobalData“These strategic opportunities include investments in innovation and productivity improvements which are intended to further enhance Givaudan’s leading global market position,” the company said.
Givaudan will use the net proceeds of the rights issue to pre-pay part of the syndicated loan facility arranged as part of the Quest acquisition.
The rights are expected to be traded on Swiss exchange from 17 June through to 23 June.
