Merck KgAa Proposes Share Split, Names New Executives
Merck KGaA will propose a 2:1 share split to the annual general meeting held on May 9 in Frankfurt, Germany. The plan calls for splitting one existing no-par value share with a pro rata share capital value of €2.60 into two no-par value shares, each with a share capital pro rata value of €1.30.
This liquidity-supporting measure, which will not alter the value of the company, would double the number of shares while dividing the share price in half, the company said.
Karl-Ludwig Kley, CEO of the German chemical and pharmaceuticals producer, said the share split is designed to make the company more attractive to investors.
"Over the past three years, the value of Merck shares has doubled, thanks mainly to the resolute implementation of our 'Fit for 2018' transformation and growth program," Kley said, adding that "Merck is in excellent financial health," with a share price consistently above €100.
Separately, the Darmstadt-based company has announced a number of executive personnel changes.
Robert Yates, who currently heads Merck Millipore, is leaving the company and will be replaced by Udit Batra, presently head of the consumer health division. Succeeding Batra will be Uta Kemmerich-Klein, who currently heads subsidiary Allergopharma. Taking Kemmerich-Keil's job at Allergopharma will be Marco Linari.
Annalisa Jenkins, head of research, is also leaving Merck, but no successor has yet been named. In the interim, her responsibilities will be assumed by Belén Garjo, who recently was named to head subsidiary Merck Serono.
Merck also is looking for a new chief financial officer, to replace Matthias Zachert, who was on Apr. 1 will return to his former employer Lanxess - as chief executive.
