Lanxess to be spun off to stockholders
The board of management of Bayer has decided that the Lanxess unit, currently operating as a Bayer subgroup, should be spun off to the company's stockholders and listed separately on the stock exchange at the beginning of 2005.
The board of management of Bayer has decided that the Lanxess unit, currently operating as a Bayer subgroup, should be spun off to the company's stockholders and listed separately on the stock exchange at the beginning of 2005.
The consent of Bayer stockholders to this measure will be sought at an Extraordinary Stockholders' Meeting in mid-November.
'In the current stock market climate, a spin-off to Bayer stockholders is the best route to a listing for Lanxess. That way the present owners of Bayer's assets automatically remain the owners of the assets being transferred to Lanxess,' explained Bayer ceo Werner Wenning. Bayer had postponed a decision on whether to launch Lanxess by way of an initial public offering (IPO) or a spin-off to stockholders in order to await capital market developments.
Lanxess ceo-designate Dr Axel C. Heitmann is pleased the board decision on the form of the stock market listing has now been made. 'We at Lanxess will continue working to get our new company off to a good start,' he said. 'We want to instill confidence in our future stockholders and convince them that Lanxess stock is a worthwhile investment.'