Bayer AG has reduced its majority stake in Covestro AG by 10.9 percent to 53.3 percent, through selling 22 million of its shares at 66.50 euros ($70.20) per share, the German chemicals and pharmaceutical group announced March 1.
Allocation of the shares took place on Feb. 28 and ownership will be transferred on March 3.
“The successful placement of a large block of Covestro shares underscores capital market's confidence in this still young company,” said Johannes Dietsch, chief financial officer of Bayer.
Bayer intends to use the proceeds of nearly 1.5 billion euros ($1.58 billion) to pay down debt.
Covestro, said Bayer, will continue to be fully consolidated in Bayer's statement of financial position. It will also be reported as an operating segment until Bayer cedes control of Covestro when it no longer has a majority at the annual stockholders' meeting.