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CIBA-GEIGY ANNOUNCES A SHAREHOLDER-FRIENDLY SHARE CAPITAL INCREASE, A SHARE SPLIT AND THE CREATION OF AUTHORIZED SHARE CAPITAL

CIBA-GEIGY ANNOUNCES A SHAREHOLDER-FRIENDLY SHARE CAPITAL INCREASE, A
 SHARE SPLIT AND THE CREATION OF AUTHORIZED SHARE CAPITAL
 BASEL, Switzerland, March 26 /PRNewswire/ -- Ciba-Geigy Limited announced today that it will propose a shareholder-friendly share capital increase, a share and bearer participation certificate split and the creation of authorized share capital at its annual general meeting to be held on May 6, 1992 in Basel.
 The share capital increase will be structured as follows:
 -- Regular share capital increase with subscription rights: 1 new registered share for 25 old shares of any capital unit category. The terms of the offering will be fixed later, but the company would expect an issue price of around 2/3 of the then current share price.
 -- Issue of "free" options: The shareholder and bearer participation certificate owner will receive one option for free for each old capital unit. Seventy options will entitle the owner to buy one new registered share. The options will run for three years and have a strike price which will be fixed later, but will be close to the then current share price. Application to list these options in Switzerland will be made.
 -- Creation of 100,000 authorized shares, without subscription rights, of which 15,000 will be reserved for employee share ownership. The authorized capital will offer the board the flexibility to issue these shares within a maximum time limit of two years.
 Dr. A. Krauer, the chairman and managing director of Ciba-Geigy limited, commented: "This share capital increase will provide additional flexibility to finance future growth and to enhance the equity base. The final terms will allow an attractive return on investment, reflecting our commitment to building shareholder value."
 The company will also propose a share and bearer participation certificate split 1:5.
 According to Dr. R. A. Meyer, chief financial office of Ciba-Geigy Limited: "the share split aims at bringing our share prices more in line with international levels. As a results, our shares will be more accessible to individual shareholders."
 The authorized capital and the split will depend on the introduction of the new Swiss corporate law, which is expected to become effective on July 1 of this year.
 This report is neither an offer to sell nor a solicitation to buy any of the securities mentioned herein. If the proposals referred to herein are adopted by the shareholders, the securities will not be offered in, or to citizens or residents of, the United States, its territories or possessions, although U.S. holders will be able to sell their subscription rights and options in Switzerland.
 -0- 3/26/92
 /CONTACT: Walter Hosp, 914-479-2435, or Werner Bossart, in Basel, 0041-61-697-2066, both of Ciba-Geigy/ CO: Ciba-Geigy ST: IN: HEA SU: ERN


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Publication:PR Newswire
Date:Mar 26, 1992
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