Teva to Sell $6.75 Billion in Stock to Buy Allergan Unit, Rimsa

Teva Pharmaceutical Industries Ltd. is selling about $6.75 billion worth of ordinary and preferred shares to fund its takeover of Allergan Plc’s generic-drug business as well as other acquisition-related expenses.

The sale consists of about $3.38 billion of American depositary shares, representing one Teva ordinary share each, and the same amount of mandatory convertible preferred stock, the Israeli drugmaker said in a statement on Monday.

Chief Executive Officer Erez Vigodman is working to complete a $40.5 billion acquisition of Allergan’s generics unit to rekindle sales growth. Last month, he also agreed to buy Mexico’s Rimsa for $2.3 billion. The two share sales will help fund those takeovers but will take place even if the acquisitions fall through, Teva said.

“If for any reason the acquisitions do not close, Teva expects to use the net proceeds from these offerings for general corporate purposes,” the company said.

Barclays Plc, Bank of America Merrill Lynch, Citigroup Inc., Morgan Stanley, BNP Paribas SA, Credit Suisse Group AG, HSBC Holdings Plc, Mizuho Securities Co. Ltd., RBC Capital Markets LLC and SMBC Nikko Securities Inc. are acting as the joint book-running managers for the offerings.

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