Created with Sketch.

1. Mar 2017 | Raw materials

Bayer sells 11% of Covestro for EUR 1.5 billion

Bayer places 10.9% of Covestro’s shares with institutional investors.

Covestro will continue to be fully consolidated in Bayer’s statement of financial position. Source: Covestro

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.

EC Techb Report Sustainability

Books

EC Tech Report Sustainability

Making coating systems more environmentally compatible is a burning issue for everyone in the industry, and one that is being fuelled by the European Green Deal. Learn all you need to know about sustainable coatings, how to produce coatings in a more environmentally friendly way and how to give coated products a longer service life. You will find an overview in the EC Tech Report of the many various approaches being adopted. We will dive deep into the European Green Deal, its key points and main purpose as well as consequences for the coating industry, see which new raw materials are being developed to replace or lower the content of products in the SVHC group and learn about different approaches to sustainable paint formulation.

This could also be interesting for you!

0 Comments

You are currently not logged in

To leave a comment, please log in.

Login
For continuously improving and optimizing our websites, we use cookies. By using our website, you agree to the usage of cookies. For more information, please visit our Privacy policy.
Accept