Page 60 - Plastics News October 2024
P. 60
BUSINESS NEWS
Abu Dhabi’s ADNOC to Acquire Covestro
billion, under simplified exclusion of subscription
rights. Shareholders benefit from a premium of
54% on the unaffected share price, prior to any
media coverage of a potential transaction.
Says Covestro’s CEO Dr. Markus Steilemann,
“We are convinced that the agreement reached
with ADNOC International is in the best interest
of Covestro, our employees, our shareholders
and all other stakeholders. With ADNOC Inter-
n investment agreement has been national’s support, we will have an even stronger
signed by Covestro with certain enti-
foundation for sustainable growth in highly at-
Aties of ADNOC (Abu Dhabi National Oil tractive sectors and can make an even greater
Company) Group, including ADNOC Internation-
contribution to the green transformation. We re-
al Limited (ADNOC International) and its subsidi- gard ADNOC International as a financially strong
ary, ADNOC International Germany Holding AG
and long-term oriented partner with whom we
(bidder). When this transaction is finalized, two will further drive our successful “Sustainable Fu-
Middle Eastern companies — SABIC and ADNOC
ture” strategy in all market conditions. Our com-
— will control a big chunk of engineering ther- plementary growth strategies, shared commit-
moplastics. Covestro’s major engineering ther-
ment to advanced technologies, innovation and
moplastics include Makrolon PC, Apec high-heat sustainability are key cornerstones of our part-
PC and Makroblend PC/PBT blends, as well as
nership.”
the Texin and Desmopan family of TPU resins
and composites. Partnership enables expansion of Covestro’s po-
sition in attractive growth markets. It has a clear
The signed agreement stipulates, among other growth strategy and is already making progress
items, that the bidder will make a public takeover in its strategic transformation that will further
offer for all outstanding shares of Covestro at a expand its position in attractive growth markets.
price of €62.00 per share. In addition, ADNOC ADNOC International sees Covestro as the foun-
International is committing itself to fully support- dational platform of its Performance Materials
ing the company's “Sustainable Future” strate- and Specialty Chemicals business, and says it is
gy. At the same time, the board of management convinced of Covestro’s strategic perspective
and the supervisory board of Covestro decided and its vision to become fully circular.
that upon completion of the transaction, the
company's share capital shall be increased by In the joint Investment Agreement, which runs
10% (18.900.000 shares) and that, at and sub- until the end of 2028, Covestro and certain en-
ject to closing, the new shares shall be issued to tities of the ADNOC Group, including ADNOC
the bidder against payment of a price per share International, have agreed on the main cor-
equal to the offer price, thus, based on an offer nerstones of the partnership. In particular, the
price of €62.00 against a total amount of €1.17 agreement contains several obligations on the
60 PLASTICS NEWS October 2024
