Fagron skips dividend and plans capital increase
BRUSSELS Feb 5 (Reuters) - Belgian pharmaceutical supplies group Fagron said on Friday it was in talks with investors over a capital increase of 220 million euros ($246.3 million) and would not pay a dividend for the 2015 financial year.
The announcement follows a turbulent year for the company, in which its long-serving chief executive stepped down and the group held talks to sell itself to another company which eventually failed.
The company has been given until the end of March by its financing banks to find a solution.
Fagron said the capital increase would take the shape of a private capital injection in combination with a public share issue.
In 2015 core profit, adjusted for one-off items, fell some 10 percent to 106.5 million euros.
The weakening of the Brazilian real, where Fagron has a lot of business, and changes to rules on reimbursement in the United States both had a negative impact.
Fagron took an impairment of 225.6 million euros at the end of 2015 related to the profitability of pharmaceutical raw materials and reduced non-sterile compounding in the United States. ($1 = 0.8933 euros) (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)
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