ADNOC Plans To Increase Takeover Proposal For Germany's Covestro: Report - COVESTRO AG SPNS/ADR by Covest

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

COVTYCOVESTRO AG SPNS/ADR by Covestro AG

$34.70-0.43%

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