Bayer: stake in Covestro reduced to 44.8 percent.

(CercleFinance.com) - Bayer has reduced its stake in chemicals subsidiary Covestro from 53.
3 percent to 44.8 percent by selling for 1 billion euros worth of shares, the German company said on Wednesday.

The drugmaker sold 17.25 million of Covestro shares at a price of 62.25 euros per share via an accelerated bookbuilding procedure addressed to institutional investors only.

Furthermore, Bayer plans to transfer 8 million Covestro shares to a pension trust, a contractual trust arrangement for pension finance, in the near future, which will reduce the group's stake by a further 4%.

In addition, Bayer has placed bonds exchangeable into Covestro shares maturing in 2020 representing an aggregate principal amount of 1 billion euros.

The two placements started after the stockmarket closed on Tuesday.

While Covestro will continue to be fully consolidated in Bayer's financial statements, the Leverkusen-based group said it aims to fully separate from the unit "in the medium term."

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