Bayer announced today that it had sold a 9.4% stake in Covestro, its polyurethanes and polycarbonates affiliate, cutting its direct stake to 31.5%.
Bayer sold 19 million Covestro shares to institutional investors at a price of €63.25 ($75.76) per share, raising €1.2 billion before expenses. The placement took place Tuesday evening at a 3.7% discount to the closing market price. As part of the placement, Bayer agreed to a 90-day lock-up period where it would not sell additional shares.
Bayer says that, until further notice, Covestro will continue to be fully consolidated in Bayer’s financial statements as it wll continue to hold the de facto majority at the Covestro annual stockholders meeting. Some 8.9% of Covestro shares are still held indirectly in Bayer pension fund. Bayer says it intends to achieve full separation from Covestro in the medium term. The placing is part of Bayer’s efforts to raise funds for its proposed $66-billion Monsanto acquisition.
By Natasha Alperowicz
Source: Chemical Week
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