Bank of America’s Australian offices are said to be a hive of activity right now, putting fear into rivals winding down for Christmas that a CSL deal may land sooner than expected.
The American bank is known to be aiding CSL on a potential deal to buy Vifor Pharma in Switzerland, currently worth about $11.5bn, and most expect a mammoth equity raising.
A February deal had been expected, but given the level of activity at BoA last week, some think a raising could happen by Christmas – and be around $6bn rather than the $3bn to $4bn earlier predicted – as CSL looks to capitalise on its rallying share price. There’s plenty at stake.
A deal of that size could yield about $100m in fees in what could be one of the most lucrative transactions of the year for bankers.
And that’s saying something – 2021 was the second highest year on record for Australian mergers and acquisitions, collectively worth more than $250bn.
Shares in Vifor Pharma have rallied from about $156 to $185 after both groups refused to rule out reports that they are in exclusive talks about a deal.
Right now, there is a mixed views over whether a deal makes sense, other than giving CSL a revenue stream.
But a raising is still expected to fly out the door for the $140bn stock, with CSL’s chief executive Paul Perreault and chairman Brian McNamee highly regarded.
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