The Board of Management of Covestro AG (“Covestro”), after consulting with the Supervisory Board, has decided to enter into formal negotiations with Abu Dhabi National Oil Company (“Adnoc”) regarding a potential transaction and the potential conclusion of an investment agreement. Additionally, the Board has decided to allow for an adequate exchange of company information to confirm assumptions (confirmatory due diligence), based on the open-ended talks that have been held thus far. The Board of Management believes that the conversations that have taken place thus far have demonstrated that Covestro and Adnoc are able to come to a consensus on the essential elements of a potential deal, such as support for Covestro’s continued expansion plan.
Adnoc’s suggested offer price of € 62 (~$66.34) per Covestro share serves as the starting point for the negotiations. It is contingent on a number of factors, including the outcome of the confirmatory due diligence and an agreement on the terms of an investment agreement.
We’ve had some positive development in our talks with Adnoc. As a result, we have made the decision to start formal transaction negotiations with Adnoc,” Covestro CEO Markus Steilemann stated.
Both Adnoc and Covestro plan to move on quickly with the confirmatory due diligence and the negotiations over a possible transaction. It remains uncertain at this point if the forthcoming talks will result in a deal. Furthermore, it is uncertain what the specific conditions of any such agreement.
Any possible transaction would require clearance from the relevant authorities and the consent of the respective boards of both parties, in addition to mutual agreement on the parameters of the commercial and legal transaction.
The Capital Markets Day, which was supposed to take place on June 27, 2024, has been postponed indefinitely in light of the latest events.
