Wednesday, Oct 20, 1999
South San Francisco, Calif. -- October 20, 1999 --Genentech, Inc. (NYSE: DNA) announced the offering of 20 million shares of its common stock in a public offering by Roche Holdings, Inc. (Roche). The Genentech common stock is being offered to the public at a price of $143.50 per share.
As a result of the offering, Roche's ownership of Genentech will be reduced to approximately 66 percent. The underwriters of the offering have an option to purchase an additional two million shares of Genentech common stock to cover over-allotments. If the option is exercised, Roche's ownership of Genentech will be approximately 65 percent. Genentech will not receive any of the net proceeds from the offering. The closing of this transaction is expected to occur on October 26, 1999.
Genentech previously announced that its board of directors has approved a 2-for-1 split of its common stock to be effective in the form of a stock dividend. The record and distribution dates for the stock split have not yet been determined. This secondary offering and the eventual stock split will nearly quadruple the number of publicly traded shares with no dilution impact.
J.P. Morgan & Co. is acting as lead manager for the offering. Goldman, Sachs & Co., Merrill Lynch & Co., Warburg Dillon Read LLC and Robertson Stephens are co-managers.
Copies of the prospectus relating to the offering may be obtained from J.P. Morgan & Co., 60 Wall Street, New York, New York 10260, Attention: Prospectus Department.
The public offering will be made by means of a prospectus. This notice does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.
Genentech, Inc. is a leading biotechnology company that discovers, develops, manufactures and markets human pharmaceuticals for significant unmet medical needs. Twelve of the approved products of biotechnology stem from Genentech science. Genentech markets seven products directly in the United States. The company has headquarters in South San Francisco, California and is traded on the New York Stock Exchange under the symbol DNA.
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