At their meeting on July 16, the board of management of Bayer AG decided that the Lanxess unit, currently operating as a Bayer sub-group, should be spun off to the company’s stockholders. The board also decided that the unit should be listed separately on the stock exchange at the beginning of 2005.
‘In the current stock market climate, a spin-off to Bayer stockholders is the best route to a listing for Lanxess.
‘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 or a spin-off to stockholders in order to await capital market developments.
‘We wanted to clarify the situation and, at the same time, ensure that the transaction would be fully accomplished’, Wenning added.
Lanxess ceo-designate Dr Axel C Heitmann says he is pleased that the board decision has now been made.
‘We want to instil confidence in our future stockholders and convince them that Lanxess stock is a worthwhile investment.’
Bayer’s stockholders will take the final decision on the spin-off at an Extraordinary Stockholders’ Meeting expected to be held in mid-November 2004.
