Evonik owners may halt IPO on financial market turmoil

11 June 2012 07:09  [Source: ICIS news]

LONDON (ICIS)--RAG-Stiftung said on Sunday it may halt the planned initial public offering (IPO) of Germany-based specialty chemicals major Evonik because of uncertainties on financial markets.

RAG, which holds a majority stake in Evonik, expects to make a final decision on whether to go ahead with the IPO this month, it said in a brief statement issued after a board meeting on Sunday.

Meanwhile, RAG will hold further talks with investors this week, it added.

While the planned IPO of Evonik has met with great interest, developments on financial markets since the end of May have led to uncertainties as to whether RAG can achieve IPO proceeds that reflect the value of Evonik, it said.

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 private equity firm CVC.

By: Stefan Baumgarten
+1 713 525 2653

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