MOSCOW (MRC) -- German chemical maker Bayer AG plans to list its plastics division as early as October 2015 to take advantage of current rich stock market valuations, according to Reuters.
The report, which cites sources familiar with the deal, said that, while a decision on the exact timing will be taken just days ahead of the actual launch of the initial public offering (IPO), Bayer wants to conclude preparations by late August.
Bayer has said it aims to turn the unit – whose name will be changed from the current "MaterialScience" to "Covestro" – into a legally separate and self-contained entity by September 1.
Bayer is planning to make presentations to equity research analysts to allow them to make more informed valuation estimates for the unit in late July or early August, the Reuters sources said.
According to Reuters, a Bayer spokesman reiterated previous statements that the plastics division would become a separately listed company by mid-2016 at the latest. "He also said that Bayer would decide in the second half of 2015 whether it would pursue its preferred option of an IPO with cash proceeds for the parent, or a transfer of the subsidiary to its shareholders in a cash-free spin-off," Reuters said.
Bayer is a global enterprise with core competencies in the fields of health care, agriculture and high-tech polymer materials. As an innovation company, it sets trends in research-intensive areas. Bayer's products and services are designed to benefit people and improve their quality of life. At the same time, the Group aims to create value through innovation, growth and high earning power. Bayer is committed to the principles of sustainable development and to its social and ethical responsibilities as a corporate citizen. In fiscal 2014, the Group employed 118,900 people and had sales of EUR 42.2 billion.
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