NEW YORK (CNNfn) - Procter & Gamble will boost its stake in Regeneron Pharmaceuticals to 16 percent in a deal valued at $17 million, Regeneron announced Thursday.|
The sale of the 573,630 shares, or the 1.3 percent stake, is at a per-share price of $29.75: in compliance with a deal made in 1997 that called for the sale of $17 million in Regeneron common stock to Procter & Gamble. The sale is expected to close in August.
The per-share price of the deal is at a premium to Thursday's market price for Regeneron shares at $23.25. The $29.75 share price is the same price Regeneron's stock sold for in a public offering last year.
After the deal, Procter & Gamble (PG: Research, Estimates) will own a total of about 5.7 million shares of Regeneron (REGN: Research, Estimates). Procter & Gamble, a consumer products company based in Cincinnati, also has warrants to purchase an additional 1.45 million shares.
Tarrytown, N.Y.-based Regeneron is a pharmaceutical company that develops therapeutic drugs for the treatment of serious diseases.
In early morning trading Thursday, Regeneron's shares rose 2-7/8 to 23-1/4 while Procter & Gamble fell 5/16 to 66-3/16.