Bayer AG (BAYN.XE) said Friday it sold a 6.9% stake in polymers company Covestro AG (1COV.XE) for 1 billion euros ($1.18 billion), and will revise its 2017 outlook next month to account for the resulting changes in its financial reporting.
The German pharmaceutical and chemicals company said it now holds 24.6% of Covestro, and has ceded control of the company.
Bayer will report Covestro as a discontinued operation in the third quarter. For continuing operations, Bayer’s key data–such as sales or earnings before interest and taxes–will be adjusted retrospectively to exclude Covestro’s contributions.
Bayer will adjust its group outlook accordingly, with the new guidance to be published Oct. 26 as part of its third-quarter report
In addition to the remaining stake, Bayer Pension Trust continues to hold 8.9% in Covestro, Bayer said.