Telix Pharmaceuticals Ltd shares got smashed on Monday, plunging 12% to $15.76 after a blockbuster merger announcement.
On top of that, it's taking on US$302 million of ITM's debt, plus another US$96 million in transaction costs and management payouts.
Once the dust settles, current Telix shareholders will own about 76% of the combined company.
Issuing 105.8 million new Telix shares is a serious jump in shares on issue, and that's what was crushing the price on Monday.
Canaccord just lifted its target to $30.25, Citi sits at $31 and JPMorgan is at $25.58.
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Telix Pharmaceuticals Ltd shares got smashed on Monday, plunging 12% to $15.76 after a blockbuster merger announcement.
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The article, shortened and in plain language
Telix Pharmaceuticals Ltd shares got smashed on Monday, plunging 12% to $15.76 after a blockbuster merger announcement. Zoom out, though, and the nuclear healthcare stock is still up 40% year to date — though that gain has shrunk to just 12% over 12 months.
On top of that, it's taking on US$302 million of ITM's debt, plus another US$96 million in transaction costs and management payouts.
Telix could end up paying a further US$700 million down the track.
Once the dust settles, current Telix shareholders will own about 76% of the combined company. ITM's shareholders will get the other 24%.
In plain terms: Telix just diluted itself, big time. Issuing 105.8 million new Telix shares is a serious jump in shares on issue, and that's what was crushing the price on Monday.
Five of the latest broker ratings are a buy — Canaccord Genuity, Citi, JPMorgan, UBS and Jarden, while RBC Capital is the lone hold.
Targets range from $19 all the way to $31, suggesting upsides between 21% and 97%. Canaccord just lifted its target to $30.25, Citi sits at $31 and JPMorgan is at $25.58. Jarden nudged up to $21, while UBS trimmed its target to $22 but kept its buy rating intact.
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