Covestro 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. Covestro’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 Covestro: "With the completion of the capital increase, Covestro 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 Covestro 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.