Kinstellar advises Bayer AG on the spin-off of Covestro, Germany’s largest IPO in more than eight years
October 2015 – Kinstellar is pleased to announce that it was part of yet another landmark transaction in recent months. We advised Bayer, one of the major players in the pharmaceutical industry, on the carve-out of Bayer Material Science, into a separate subsidiary, which is legally and economically independent. The new unit, Covestro AG, became operative as of 1st September 2015.
Our client decided on this restructuring in its desire to concentrate exclusively on the life sciences business. This was a complex reorganisation in 59 countries around the globe over the last 12 months. Kinstellar advised on this transaction in Bulgaria, the Czech Republic, Hungary, Romania, Serbia, Slovakia, and Turkey. Our assistance included advice on transfer of assets, transfer of employees, competition issues and tax implications.
On 6 October 2015, the newly formed Covestro AG made its debut on the stock market with what Reuters called “Germany’s largest IPO in more than eight years” and its share price rose as much as 12.5 per cent on the very first day of trading!