Siemens Healthineers in first 2.9 bln euro cash call to fund Varian deal

FRANKFURT, Sept 2 (Reuters) - Siemens Healthineers on Wednesday launched a 2.9 billion euro ($3.43 billion) capital increase to finance parts of the planned takeover of U.S. peer Varian.

The German healthcare group last month agreed to buy Varian in a $16.4 billion deal, seeking to create a global leader in cancer diagnostics and radiotherapy.

Sources told Reuters at the time that Healthineers was preparing a two-step capital increase to raise a combined 7.5 billion euros via share placements.

The company said on Wednesday that the transaction, an accelerated bookbuilding process for institutional investors, will increase Healthineers’s share capital by up to 7.5%, within the limits of what has been pre-authorized by shareholders.

The new shares, worth about 2.9 billion euros, will be priced and allocated on Thursday, according to a term sheet by Credit Suisse, one of the co-bookrunners.

J.P. Morgan and UBS are joint global coordinators and bookrunners; BNP, HSBC, Bank of America are joint bookrunners while Deutsche Bank and UniCredit are additional co-bookrunners, according to the document.

$1 = 0.8451 euros Reporting by Ludwig Burger Editing by Alexandra Hudson