FRANKFURT, April 7 Evonik will ask
shareholders' permission to issue up to one quarter of its
current equity capital in new shares over the next five years,
as the German chemicals maker scans the market for takeover
Chief Executive Klaus Engel said last month that larger
takeovers were an option for the maker of feed additives, clear
acrylic sheet and high-tech plastics.
Based on the current share price, a 25 percent stake would
be worth 3.3 billion euros ($45.2 billion) but a capital
increase is typically priced at a discount to the trading price.
Since Evonik was debt free at the end of last year, it would
have considerable leeway to take out additional bonds or loans
for any merger deal.
If given the green light by investors, the permission to
raise capital would be valid until May 2019, the invitation to
shareholders for the May 20 annual general meeting showed.
Any capital increase would require the consent of the
The new shares could be issued against cash but could also
be used as currency to be offered to shareholders of any merger
partner, the invitation said.
Evonik is 68 percent-owned by the RAG foundation, a public
sector trust that will finance the cost of maintaining Germany's
abandoned coal mines. Buyout firm CVC holds an 18
($1 = 0.7303 Euros)
(Reporting by Ludwig Burger; Editing by Mark Potter)