Based on the open-ended talks held so far with Abu Dhabi National Oil Company ("Adnoc"), the Board of Management of Covestro AG ("Covestro") , after consulting with the Supervisory Board, has decided to enter into concrete negotiations with Adnoc.
These negotiations will cover a potential transaction and the possible conclusion of an investment agreement. Additionally, they will allow for an adequate exchange of company information to confirm assumptions (confirmatory due diligence).
Possible Offer Price of €62 per Covestro Share
In the view of the Board of Management, the discussions so far have shown that Covestro and Adnoc can generally reach a common understanding on core aspects of a possible transaction. This includes support for Covestro’s further growth strategy. The starting point for the negotiations is a possible offer price of €62 per Covestro share, which Adnoc has indicated. This offer is subject to the results of the confirmatory due diligence and agreement on the content of an investment agreement.
"
We have made good progress in our discussions with Adnoc. Therefore, we have decided to enter into concrete transaction negotiations with Adnoc," said Markus Steilemann, CEO of Covestro.
Capital Markets Day to be Postponed
Adnoc and Covestro both intend to proceed with the negotiations about a potential transaction and the confirmatory due diligence in a timely manner. At this time, there is no certainty whether the upcoming negotiations will lead to an agreement. There is also no certainty as to the final terms of any such agreement.
Any potential transaction would require mutual agreement on the commercial and legal transaction parameters. It would also need the approval of the respective boards of the parties and clearance by the competent authorities. In light of recent developments, the Capital Markets Day scheduled for June 27, 2024, will be postponed until further notice.
Source: Covestro