By switching to a sponsored Level 1 ADR program, Covestro is giving global investors easier access to its shares. Covestro's ADRs will be traded on the U.S. OTC (over-the-counter) market beginning December 1, 2016, under the symbol COVTY. This will enable the company to make direct contact with registered depositary receipt (DR) investors. "The U.S. is not only a core sales market and important production location for Covestro, it is also of great importance to us as a capital market. With this switch to a sponsored ADR program, we want to broaden our shareholder base in the long term and simplify access to our shares," says Frank H. Lutz, CFO of Covestro. "What's more, this step will enable us to offer our employees in the U.S. the opportunity to take part in our share participation program Covestment, which we expect to launch in the U.S. sometime in 2017," adds Mr. Lutz.
American depositary receipts are issued by U.S. depositary banks as tradable securities that certify the right to shares of a non-U.S. company. Investors are thus able to invest indirectly in German companies that are not listed on a U.S. stock exchange. At the same time, securitization ensures increased transparency for investors compared to unsponsored ADRs.
The financial services provider Bank of New York Mellon was chosen as the depositary bank for the sponsored ADR program.
With 2015 sales of EUR 12.1 billion, Covestro is among the world's largest polymer companies. Business activities are focused on the manufacture of high-tech polymer materials and the development of innovative solutions for products used in many areas of daily life. The main segments served are the automotive, electrical and electronics, construction and the sports and leisure industries. Covestro, formerly Bayer MaterialScience, has 30 production sites around the globe and as of the end of 2015 employed approximately 15,800 people (full-time equivalents).
Find more information at www.covestro.com.
This press release may contain forward-looking statements based on current assumptions and forecasts made by the management of Covestro AG. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Covestro's public reports which are available on the Covestro website at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Covestro AG.