XRG P.J.S.C. has recently informed Covestro AG that its general meeting will be asked to approve the transfer of shares held by minority shareholders to XRG against appropriate cash compensation. The move is being pursued under Section 327a (1) sentence 1 of the German Stock Corporation Act, enabling a squeeze-out under German stock corporation law.

XRG, together with its indirect wholly owned subsidiary ADNOC International Germany Holding AG, currently holds approximately 95.10 per cent of Covestro’s share capital. This position qualifies XRG as the majority shareholder under the relevant provisions of the Act.

The squeeze-out will take effect subject to approval by Covestro’s general meeting and subsequent registration of the transfer resolution with the commercial register. The level of cash compensation to be offered to minority shareholders has not yet been determined and will be disclosed at a later stage.