Bayer has reduced its direct interest in Covestro from 24.6% to 14.2%, selling a total of 21 million shares at a price of €86.25/share. The placement volume amounted to €1.8 billion ($2.2 billion), exceeding the €1.5 billion initially envisaged, due to strong interest shown by investors. The share placement took place on 10 January after market close CET and was aimed exclusively at institutional investors.
Bayer has been divesting its stake in Covestro in stages since March 2017 as it focuses on its life sciences businesses. Bayer intends to achieve full separation from Covestro in the medium term, as previously announced.
The price of the latest placement is €19.75/share higher than the price achieved in March 2017. Bayer then reduced its stake in Covestro from 64.2% to 53.3%, selling 22 million shares and raising €1.5 billion at €66.5/share. The company reduced its stake further in June, to 44.8%, selling 17.25 million shares at €62.25/share. By September, it had raised a further €2.2 billion and reduced it’s stake in Covestro to 24.6%. The company has raised about €5.5 billion in total from Covestro shares since March.
Bayer’s material science subgroup was renamed Covestro in September 2015, and Covestro was publicly listed in October of the same year.
Credit Suisse and Goldman Sachs International acted as joint bookrunners for the latest placement, and Bayer has agreed to a 90-day lock-up period as part of the transaction.
The Bayer Pension Trust holds a separate 8.9% stake in Covestro.
By Francinia Protti-Alvarez
Source: Chemical Week
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?