In a filing on the Icelandic Exchange yesterday morning, generic drug maker Actavis announced plans to sell 544 million shares at ISK 38.50 per share, just under yesterday’s closing price of ISK 40.20 (market cap. ISK 121 billion). The total value of the placement is estimated ISK 21 billion; the dilution will amount to 18 per cent.
Actavis recently acquired three companies, one US, one Czech and one Indian. Iceland State Radio RÚV claimed yesterday that the proceeds would in part be used to finance the company’s recent acquisitions.
As reported by the Financial Times in January, the Actavis board pledged in 2003 to list in London in 2004. In June 2004, however, the company announced that a UK listing would be delayed. A company spokesman explained to Morgunblaðið at the time that Acavis “had not been granted an exemption from UK accounting principles” and did not wish to incur the cost of restating its financials according to UK principles which anyhow were scheduled to be changed to the international principles followed by Actavis by year end 2004.
Actavis CEO reiterated the company’s intention of seeking a listing in the UK in December 2004, and the Financial Times further reported in January that Actavis had appointed two investment banks to prepare for a UK listing, targeted at EUR 350 million (ISK 28 billion). As yet, there is no news as to whether Actavis intends to pursue the UK listing.
Actavis’s share offering in Iceland follows that of fashion holding company Mosaic (see Iceland Review, Daily News, June 7, “Mosaic raises money in Iceland”.)
On April 8, the Financial Times ran a story on the Icelandic economy, featuring several Icelandic companies. The British broadsheet said it detected “a feeling of froth” in Iceland and advised its readers to “take Icelandic cash when it is offered, by all means, but be wary if you are ever offered Icelandic shares.”
