21 May 2012 19:09 [Source: ICIS news]
LONDON (ICIS)--The owners of Germany-based specialty chemicals major Evonik will go ahead with plans to prepare the company for an initial public offer (IPO), they said on Monday.
However, RAG did not disclose the IPO’s pricing, its exact timing or other details.
RAG CEO Wilhelm Bonse-Geuking said RAG and private equity firm CVC, which holds the remaining 25.01% of Evonik, would keep a close eye on “not insignificant and rising risks” in financial markets and would adapt timelines for the IPO as necessary.
Evonik, for its part, had a good start to 2012 and has good business prospects, Bonse-Geuking said in a brief statement.
Last week, in an interview with German business daily Handelsblatt, Bonse-Geuking said RAG would only proceed with the IPO if it obtains a price it considers fair.
“If a price we consider fair isn’t reached, the shares won’t be sold,” he told the paper in an interview.
Analysts said Evonik’s IPO could go ahead by end June or early July, depending on how capital markets develop in light of the ongoing eurozone debt crisis.
RAG is a German coal foundation. Proceeds from Evonik’s IPO will go towards paying for environmental and other costs related to the closure of German coal mines.
In 2008, RAG suspended plans for Evonik’s IPO because of unfavourable capital market conditions. Instead, RAG sold a 25.01% stake of Evonik to CVC.
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