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BMS Spinoff Update

Bayer MaterialScience fully on track to earn capital costs – CFO

DUESSELDORF, Germany, April 21

(Reuters) – Bayer's MaterialScience unit, which is preparing for a separate listing, is fully on track to earn its cost of capital this year, a key hurdle in gaining investors' trust, its finance chief said on Tuesday.

"We are fully on track to earn our cost of capital this year," CFO Frank Lutz said on the sidelines of an industry conference.

"We are very satisfied with the progress we are making."

He also confirmed Bayer's road map of listing the plastics unit, which makes transparent plastics for blu-ray discs and panoramic roofs for cars as well as foam chemicals, by the first half of 2016 at the latest.

There is "no lack of cash" for dividends but discussions are ongoing about the business's future dividend policy, he added.

He also said that MaterialScience would become a legally and economically self-contained company within the Bayer group by Sept. 1. (Reporting by Ludwig Burger; Editing by Maria Sheahan)