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UPDATE 1-Getinge says plans 4 bln SEK rights issue, shares drop
June 14, 2017 / 11:08 AM / 3 months ago

UPDATE 1-Getinge says plans 4 bln SEK rights issue, shares drop

(Adds shares, details)

June 14 (Reuters) - Swedish medical technology firm Getinge said on Wednesday it was planning a guaranteed 4 billion crown ($461 million) rights issue to strengthen its balance sheet and increase flexibility, sending shares lower.

* Getinge shares down 5.7 pct at 1101 GMT

* Says issue aimed at reducing debt and thereby creating greater scope for action

* Says work on planned spin-off is proceeding according to previously announced plan

* The Getinge Board is preparing a proposal on a structural change under which the Group will be divided into two businesses, Getinge and Arjo

* Says entire rights issue is covered by a subscription and guarantee undertaking from Carl Bennet AB, which has 48.9 pct of the votes in Getinge

* “Getinge is a strong company with healthy cash flows that could be used to strengthen the balance sheet. However, we want to be able to act faster to create greater scope for action, which is why I am guaranteeing the entire new share issue,” Carl Bennet, Getinge’s chairman, said in a statement

* The Fourth Swedish National Pension Fund, one of Getinge’s largest owners, has expressed support for the right issue and has the intention to subscribe for its portion Source text for Eikon: Further company coverage: ($1 = 8.6849 Swedish crowns) (Reporting by Johannes Hellstrom, Editing by Helena Soderpalm)

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