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CVC sells down stake in German chemicals group

The buyout house sold a 3.9 percent stake in Evonik Industries at €29.15 per share

CVC Capital Partners is continuing to reduce its stake in German chemicals group Evonik Industries, selling around 18 million shares, a stake of around 3.9 percent, through a share placement at €29.15 per share.

CVC originally acquired a 25.01 percent stake in Evonik from RAG-Stiftung (RAG Foundation) for €2.4 billion in June 2008. At the time the firm was investing its fifth buyout fund, which closed on €12.1 billion in March 2008.

Through this placement CVC has reduced its stake to 14 percent. RAG Foundation holds a 67.9 percent stake in the company, and around 18 percent of Evonik’s shares are free floating.

The return for CVC from this partial exit is unclear. CVC declined to comment on returns.

RAG Foundation is a German public sector trust set up in 2007 with the aim of building up assets to fund long-term liabilities associated with the wind down of Germany’s hard coal mining activities. The trust aims to fund its obligations through the sale of shares in Evonik and through the income from its holdings and other financial assets, according to its website.

Headquartered in Essen, Germany, Evonik is a specialty chemicals company focusing on activities in the consumer health and nutrition, resource efficiency and specialty materials sectors. According to its full year 2014 financial report, sales in 2014 amounted to €12.9 billion, with adjusted EBITDA of €1.87 billion. Net income for the company was €568 million.

CVC and RAG listed Evonik on the Frankfurt and Luxembourg stock exchanges in April 2013, placing around 67.4 million shares with institutional investors in Germany and abroad, according to a statement from Evonik at the time.

Evonik’s share price has risen around 12 percent since the beginning of the year. At 11:40 this morning shares were down 3.63 percent to €29.76 per share, giving the company a market capitalisation of €14.19 billion.