Bayer AG has reduced its holding in Covestro from 64.2% to 53.3%. This was achieved by selling 22 million of its shares to institutional investors at a price of EUR 66.50 per share.
Allocation of the shares took place yesterday, ownership will be transferred on Friday, March 3, 2017. “The successful placement of a large block of Covestro shares underscores capital market’s confidence in this still young company,” said Johannes Dietsch, Chief Financial Officer of Bayer AG. The company intends to use the proceeds of nearly EUR 1.5 billion to pay down debt.
The current forecast for core earnings per share of the Bayer Group for 2017 takes account of a 64.2% holding in Covestro. The holding is now 53.3%. Nevertheless, Bayer still expects a mid-single-digit percentage increase in core earnings per share from continuing operations in 2017.
Covestro will continue to be fully consolidated in Bayer’s statement of financial position. In line with applicable accounting standards, Covestro will still be reported as an operating segment until Bayer cedes control of Covestro because it no longer has a majority at the annual stockholders’ meeting.
Source: European Coatings
Conti brings over two decades of HR leadership experience across global manufacturing, specialty chemicals, and industrial sectors. Most recently, he served as CHRO at Vantage Specialty Chemicals, where he led enterprise-wide transformation initiatives.
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