Covestro wants to start negotiations with the takeover candidate ADNOC from Abu Dhabi.
As the DAX group announced, these discussions should be conducted in an open-ended manner. “Whether, in what form and under what conditions an agreement will be reached between the discussion partners is an open question and will depend on the course of the upcoming discussions,” said Covestro.
“ADNOC’s interest in our company underlines our strong position as one of the world’s leading manufacturers of high-quality plastics and as a pioneer on the path to a circular economy,” said CEO Markus Steilemann, according to the statement.
The Bloomberg news agency reported on a supervisory board meeting at Covestro in the afternoon, in which the supervisory body was supposed to decide on negotiations with Abu Dhabi National Oil Co (ADNOC). The share then rose and closed with a gain of almost 8 percent at 51.50 euros.
This was preceded by weeks of discussions between the companies’ advisors about a possible transaction in which Covestro could be valued at 11.6 billion euros or more, according to Bloomberg. ADNOC is said to have recently submitted an improved bid of 60 euros per share.
As Covestro further announced, in addition to an agreement on the commercial and legal transaction parameters, the approval of the respective committees of the companies and approval by the responsible authorities would also be necessary.
The company further emphasized that the discussions would particularly focus on securing the further implementation of the future- and sustainability-oriented corporate strategy, including corresponding regulations on corporate governance. “Regardless of the discussions with ADNOC, we will continue to fully concentrate on implementing our successful ‘Sustainable Future’ strategy in order to develop our full potential and further advance the transformation to a circular economy,” continued CEO Steilemann.
No further communication regarding the negotiations is currently planned, unless it is necessary due to disclosure regulations.
Covestro shares rose by 2.52 percent to 52.80 euros in after-hours trading on Tradegate compared to the XETRA closing price.
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