Covestro plans to take over the Resins & Functional Materials (RFM) division from the Dutch chemical company DSM. The plastics manufacturer needs money for this. A share issue should bring in the necessary cash.
The plastics manufacturer Covestro wants to raise around 450 million euros of fresh capital overnight and thus finance the latest acquisition in the Netherlands. The DAX group is offering large investors around 10.2 million new shares – that is just under six percent of the share capital. The placement should be completed by Wednesday morning.
The money will be used to finance the announced takeover of the Resins & Functional Materials (RFM) division from the Dutch chemical group DSM, as Covestro announced on Tuesday evening. Covestro is paying 1.6 billion euros for DSM's business with coating resins and fiber optic cable coatings.
The issue seems to be in demand: An investment bank commissioned with the placement informed the interested parties in the evening that the price for the new shares will probably be at least 43.85 euros. That would be a minimal discount on the Xetra closing price of Covestro shares of EUR 44.25. The banks had previously named a range of 43.72 to 44.25 euros. In order to prevent the new shares from being diluted, Covestro has promised not to place any further shares or convertible bonds within the next 90 days without the approval of the banks.
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