ADNOC Plans To Increase Takeover Proposal For Germany's Covestro: Report

Zinger Key Points
  • ADNOC to boost Covestro takeover offer to €60/share, valuing the company at $12.3B.
  • ADNOC plans concessions for due diligence, job guarantees, and an $8B investment post-deal.

Abu Dhabi National Oil Co. (ADNOC) reportedly plans to increase its preliminary takeover offer for Covestro AG COVTY.

The Middle Eastern oil & gas giant aims to submit a fresh proposal of about €60 per share sooner, valuing Covestro at around €11.3 billion ($12.3 billion), reported Bloomberg.

ADNOC plans to offer concessions to pave the way for the commencement of detailed due diligence, as per the report.

Also, the company is looking to pledge job guarantees for several years, along with an investment of about $8 billion post-deal closure.

Notably, in June, Covestro reportedly rejected an initial takeover proposal from ADNOC, citing a 'too low' offer.

ADNOC had then made an initial offer of around $12 billion to Covestro, representing a per-share price in the mid-50 euros, which compares with the closing price of 40.31 euros as of 19th June.

ADNOC's offer is at par with Abu Dhabi's motive to diversify the economy from energy.

In October, Covestro disclosed Q3 sales of EUR3.6 billion (–22.7%), with EBITDA of EUR277 million (–8.3%), which met its guidance. 

Price Action: COVTY closed lower by 1.15% at $29.25 on Wednesday.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Posted In: EquitiesLarge CapM&ANewsMarketsMediaBriefsEurasia
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!