Covestro Concludes Share Buyback of EUR 1.5 Billion

Date: 13/12/2018
Autor: Redacción
Categorías: Other news

Covestro AG has successfully completed its share buyback program announced in fall 2017. The program comprised the repurchase of shares worth up to EUR 1.5 billion, or up to 10% of the capital stock.

The company has acquired shares totalling more than 9.8% of the capital stock equalling close to EUR 1.5 billion in three tranches since November 2017. The maximum limit of 10% allowed by law has thus almost been achieved around half a year earlier than planned. The difference to the maximum limit is mainly attributable to employee stock purchase plans from the years 2016 and 2017, as part of which the company had already acquired treasury shares. "We can conclude the share buyback ahead of schedule now that the limit has been reached," stated Covestro's CFO Dr. Thomas Toepfer. "The objective of the share buyback program was to create value for our shareholders. This remains our priority. In view of Covestro's sustained strong financial position, we therefore aim to lay the foundations for potential further buybacks."

The Board of Management plans to propose a new authorization to acquire treasury shares at an amount of up to 10% of the capital stock to the coming Annual General Meeting. The German Stock Corporation Act (AktG) requires such an authorization so that a decision can be taken on potential further share buybacks in the future. Renewal of this authorization to repurchase shares up to the amount permissible under the law will cancel the existing authorization, which was the foundation for the now concluded share buyback program.

Following the conclusion of the current program, the Board of Management has also decided to retire the acquired 19.5 million treasury shares and thus reduce the capital stock by EUR 19.5 million. In future, Covestro AG's capital stock will be EUR 183 million, divided into 183 million bearer shares.