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Bayer Sells 10.4% Stake In Covestro For Higher Than Planned Placement Volume

German conglomerate Bayer AG (BAYZF.PK,BAYRY.PK,BYR.L) Thursday said it has reduced its direct interest in Covestro AG, a Bayer spin off formed in 2015, to 14.2 percent from 24.6 percent, 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, clearly exceeding the 1.5 billion euros initially envisaged, the company noted. The share placement took place on Wednesday evening after market close and was aimed exclusively at institutional investors.

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, formerly Bayer MaterialScience, Bayer Pension Trust holds a further 8.9 percent.

As announced earlier, Bayer intends to achieve full separation from Covestro in the medium term.

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