Bayer reduces stake in polymer spin-off Covestro
The two placements started on Tuesday after the stock market closed and are addressed to institutional investors only. Barclays and Morgan Stanley are acting as joint bookrunners. In the context of the placements, Bayer has agreed to a lock-up period of 90 days.
Furthermore, Bayer will deposit 8 million Covestro shares in Bayer Pension Trust e. V., a contractual trust arrangement for pension finance, in the near future. The package amounts to 4 percent of Covestro’s shares and will be subject to the same lock-up period of 90 days.
The transactions offer Bayer the opportunity to further reduce its holding in Covestro. Covestro will continue to be fully consolidated in Bayer’s financial statements since Bayer should continue to hold the majority at a Covestro annual stockholders meeting after these transactions are completed. As previously announced, Bayer aims to achieve full separation from Covestro in the medium term.
For more information:
www.bayer.com