Düsseldorf At first the message came from Covestro, with the the Dax-Group surprised its shareholders a few weeks ago, not at all well: In the midst of the economic crisis, the plastics manufacturer wants to buy a division of the Dutch DSM Group for 1.6 billion euros in order to expand its specialty chemicals business for paints and coatings on fiber optic cables.
According to the unanimous opinion of experts, this is a promising area. But many shareholders were apparently bothered by the purchase price that was, in their opinion, too high – and possibly also by the financing of the deal: 450 million euros came in through the issue of new shares.
The capital and future earnings of existing shareholders will be diluted because profits and dividends will be distributed across more shares in the future. To put it bluntly: the cake stays the same size, but the pieces get smaller.
The Covestro shares lost seven percent of their value immediately after the purchase was announced. But part two of the stock market story followed promptly when Covestro followed suit and sold 10.2 million new shares at a price of EUR 43.85 a good two weeks ago. This was only a discount of 40 cents on the previous closing price.
That is remarkably little and shows how well the market has received the new shares. Even more: the next day, Covestro shares were among the winners in the Dax with a price gain of three percent.
“Very positive” judged the Baader Bank Covestro’s corporate action. It was successful, which speaks for the confidence of investors, so analyst Markus Mayer. Like most analysts, many investors appeared to have concluded that the takeover made sense.
In the uncertainty of the corona pandemic, in which liquidity is a scarce commodity that must be kept in the company, not only Covestro CEO Markus Steilemann and his CFO Thomas Toepfer are successfully tapping into the capital market.
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