June 06, 2017
Bayer further reduces stake in Covestro
Accelerated bookbuilding and bonds exchangeable into Covestro shares offered / Bayer to deposit 8 million Covestro shares in Bayer Pension Trust e. V.Leverkusen, June 6, 2017 - Bayer AG is reducing its holding in Covestro by way
of an accelerated bookbuilding procedure with a targeted volume of EUR 1
billion. In addition, Bayer AG is offering EUR 1 billion of bonds exchangeable
into Covestro shares maturing in 2020.
The two placements started on Tuesday after the stock market close 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.
Bayer: Science For A Better Life
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 2016, the Group
employed around 115,200 people and had sales of EUR 46.8 billion. Capital
expenditures amounted to EUR 2.6 billion, R&D expenses to EUR 4.7 billion.
These figures include those for the high-tech polymers business, which was
floated on the stock market as an independent company named Covestro on October
6, 2015. For more information, go to www.bayer.com.