December 14, 2013 / 11:31 AM / 4 years ago

Evonik owner intends to cut stake in long term -paper

FRANKFURT, Dec 14 (Reuters) - State-backed trust RAG wants to cut its majority stake in German speciality chemicals and plastics maker Evonik to about a quarter, the head of the trust was quoted on Saturday as saying.

“Sooner or later we will sell Evonik shares and we aim to reduce our stake in the long term to over 25 percent,” German newspaper Rheinischen Post cited RAG chief Werner Mueller as saying.

The trust, which originates from the former Evonik parent Ruhrkohl AG, currently holds about two thirds of Evonik, Germany’s second-largest chemicals maker after BASF.

Private equity firm CVC holds 17.9 percent of the company, which made its stock market debut in April.

RAG is a public sector trust, charged with managing the liabilities arising from Germany’s abandoned coal mines.

Mueller also said it intended to invest more of its capital in mid-size companies.

RAG needs 18-19 billion euros in total to fund the maintenance of old coal mines from 2019, mainly for pumping out ground water that would otherwise cause tunnels to collapse. (Reporting by Harro ten Wolde; editing by Patrick Graham)

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