BERLIN (Reuters) - Pharmaceutical group Bayer (DE:BAYGn) is selling a further stake in plastics company Covestro (DE:1COV), placing a holding of around 14.2 percent via an accelerated bookbuilding process.
Covestro was spun off from Bayer in 2015 and Bayer said this latest sale marks the start of the full separation from its former unit.
Bayer, which is buying seed maker Monsanto (N:MON), raised 1.8 billion euros (1.6 billion pounds) in January from selling a 10.4 percent stake in Covestro.
The latest sale of around 29 million shares to institutional investors was set to generate proceeds of about 2.2 billion euros, Bayer said.
Bayer said that, after the sale, it would hold just under 7 percent of Covestro shares which it acquired from Bayer Pension Trust. These would be used to repay an exchangeable bond issued in 2017 that matures in 2020, Bayer said.
BofA Merrill Lynch and J.P. Morgan are acting as joint bookrunners. They said the shares would be placed at a price range of 75.26 to market.
Covestro shares closed at 76.48 euros on Thursday, while Bayer shares closed at 99.97 euros.