By Anthony Shevlin
Bayer said late Monday that investment company Temasek has signed an agreement to increase its share capital in the German company.
Temasek has subscribed to 31 million new Bayer shares, which equals around 3.6 percent of Bayer's capital stock, for 3 billion euros ($3.71 billion) in total gross proceeds, Bayer said.
Under the agreement, Bayer will issue the new registered--no par value--shares to a subsidiary of Temasek at market prices with an entitlement to dividends as of Jan. 1, 2017, the German company said.
Once the capital increase has been completed, and together with its existing shareholdings, Temasek will hold approximately 4 percent of Bayer's issued capital stock, Bayer said. The issued shares won't be subject to any lock-up period, it said.
Bayer Chief Executive Werner Baumann said the "investment affirms our business strategy including the proposed acquisition of Monsanto], as well as Bayer's strong growth prospects."
Write to Anthony Shevlin at [email protected]