MOSCOW (MRC) -- Bayer Group sold 28.81 million shares representing a 14.2 percent interest in Covestro at a price of 75.50 euros per share, as per the company's press release.
The proceeds of this sale totaled 2.2 billion euros. Bayer AG now holds just 6.8 percent of Covestro shares to repay the exchangeable bond that matures in 2020. Bayer AG acquired these shares from Bayer Pension Trust, which now no longer holds any Covestro shares.
"We very successfully concluded the selling process for this largest placement of Covestro shares,” said Werner Baumann, Chairman of the Board of Management of Bayer AG. Covestro has been listed on the stock exchange since October 6, 2015, and was promoted to Germany’s lead index DAX a few weeks ago. Through the sale of Covestro shares since the IPO, Bayer has generated proceeds of more than 9 billion euros. The exchangeable bond issued in June last year raised an additional one billion euros. “This is a very pleasing result, which we achieved faster than anticipated,” explained Johannes Dietsch, Chief Financial Officer of Bayer AG. “Moreover, the proceeds from the sale are higher than expected. This will be considered when determining the size of the share capital increase to finance the proposed acquisition of Monsanto."
The share placement took place on Thursday evening after market close and was aimed exclusively at institutional investors. BofA Merrill Lynch and J.P. Morgan acted as joint bookrunners.
Bayer is a global enterprise with core competencies in the Life Science fields of health care and agriculture. Its products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2017, the Group employed around 99,800 people and had sales of 35.0 billion euros. Capital expenditures amounted to 2.4 billion euros, R&D expenses to 4.5 billion euros.
MRC