Bayer makes cash at Covestro by selling 14.2% of capital for 2.2 billion - y69

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Tuesday, May 8, 2018

Bayer makes cash at Covestro by selling 14.2% of capital for 2.2 billion


The German chemical and pharmaceutical group Bayer has sold a package of 28.81 million shares of Covestro , equivalent to 14.2% of the shareholding of the plastics manufacturer, for a total of 2,200 million euros, as confirmed by the multinational, which it will still maintain a 6.8% stake in its former polymer subsidiary .


Bayer said in a statement that the sale of 28.81 million shares of Strove was carried out after the close of the session on Thursday between institutional investors at a price of 75.50 euros per share , which implies a discount of 1.3% with respect to the 76.48 euros of the closing price of the titles of the company.
Also, the German said it still holds a 6.8% of Covestro for the reimbursement of a bond due 2020 .
"We have successfully completed the sales process for this large placement of shares of Strove," said Warner Bultmann, chairman of the board of Bayer, who noted that since the flotation of the plastics manufacturer on October 6, 2015 Bayer it has obtained capital gains of "more than 9,000 million euros".
In fact, Johannes Dietsch, financial director of Bayer, stressed that the results obtained with the divestment have been "greater than expected" and added that this circumstance will be taken into account when determining the amount of capital increase necessary to finance the acquisition of Monsanto .

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