Roche given go-ahead to reduce stake in US subsidiary
The Swiss pharmaceutical giant, Roche, has been given the go-ahead to sell up to 19 million shares in the American biotechnology company, Genentech. At current prices, Roche stands to net more than SFr5 billion.
The Swiss pharmaceutical giant, Roche, has been given the go-ahead to sell up to 19 million shares in the American biotechnology company, Genentech. At current prices, Roche stands to net more than SFr5 billion.
The US Securities and Exchange Commission, which oversees trading on Wall Street, raised no objections to Roche’s plans to divest itself of eight per cent of its shares in Genentech.
Roche says it will now proceed to offer the shares to the public.
A company statement said pricing was still open and that the placement would occur in the coming weeks.
Roche said last week it planned to sell the shares, which will reduce its stake in the California-based company from 66 to around 58 per cent.
However, Roche made clear that it still intends to continue its relationship with Genentech.
It said attractive market conditions and a desire for more liquidity were behind the sale.
At current prices, the move would net Roche SFr 5.6 billion.
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