BRIEF—Bayer sells 10.4% stake in Covestro for $2.2 billion

Germany’s Bayer has reduced its direct interest in Covestro, the material sciences business spun out in 2015, from 24.6% to 14.2%, selling a total of 21 million shares at a price of 86.25 euros per share.

Due to strong interest shown by investors, the placement volume amounted to 1.8 billion euros ($2.2 billion), clearly exceeding the 1.5 billion euros initially envisaged.

Credit Suisse and Goldman Sachs International acted as joint bookrunners. As part of the placement, Bayer has agreed to a 90-day lock-up period.

Apart from the direct interest that Bayer AG holds in Covestro, Bayer Pension Trust holds a further 8.9%. As already announced, Bayer intends to achieve full separation from Covestro in the medium term.