ÃÜÌÒAV successfully completes capital increase
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- Complete placement of 10,200,000 offered shares
- Gross proceeds of EUR 447 million
- Use of proceeds to finance the announced acquisition of the RFM business from DSM
ÃÜÌÒAV has successfully completed the capital increase envisaged in connection with the announced acquisition of Royal DSM’s Resins & Functional Materials (RFM) business through partial utilization of its Authorized Capital. As part of the capital increase, 10,200,000 new no-par value ordinary bearer shares were placed with institutional investors in an accelerated bookbuilding process. The placement price of EUR 43.85 per share represents a discount of 0.9 percent compared to the XETRA closing price of EUR 44.25 on October 13, 2020. The gross proceeds amount to EUR 447 million. ÃÜÌÒAV’s share capital of EUR 183.0 million thus increases by approximately 6 percent to EUR 193.2 million. The proceeds from the capital increase will be used to finance part of the announced acquisition worth a total of EUR 1.61 billion.
Dr. Thomas Toepfer, Chief Financial Officer of ÃÜÌÒAV: "With the completion of the capital increase, ÃÜÌÒAV is taking an important step in the announced acquisition. This measure is a key element of the financing: with a balanced ratio of equity and debt capital, we clearly commit ourselves to our solid investment grade rating. The successful placement of all offered shares is an impressive proof of the capital market's confidence in ÃÜÌÒAV and the financial and strategic logic of the transaction.”
The newly issued shares are to be admitted to trading without a prospectus on the regulated market with additional post-admission obligations (Prime Standard) of the Frankfurt Stock Exchange on October 15, 2020 and carry dividend rights for the fiscal year 2020. Trading is expected to commence on October 16, 2020.
The capital increase was executed by Joint Bookrunners BofA Securities, Citigroup and Credit Suisse, with additional support from Co-Bookrunners Banco Santander, Commerzbank, Deutsche Bank and UniCredit.
About ÃÜÌÒAV:
ÃÜÌÒAV is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. ÃÜÌÒAV supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from ÃÜÌÒAV are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, ÃÜÌÒAV aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. ÃÜÌÒAV generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by ÃÜÌÒAV. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in ÃÜÌÒAV¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.