Middle East

BASF is in dispute over Wintershall Dea IPO

BASF said co-owner Letter One continues to promise to sell its shares in the oil and gas business Wintershall Dea AG on the stock market, despite short-term initial public offering (IPO) opposition. rice field.

Disagreements between owners are subject to sanctions as Wintershall Dee is an investor in the Nord Stream 2 gas pipeline between Russia and Germany and tensions over Ukraine between Western countries and Russia increase. It increases the uncertainty around Wintershall Dee because of the possibility.

The Wintershall Dea (WD) IPO has already been postponed twice. In June, BASF and LetterOne shareholders declared that they would put the levitation on hold due to market conditions at the time and would not seek an IPO until 2021 and beyond.

Since then, no specific date has been mentioned.

“We continue to promise to sell our shares in Wintershall Dee and continue to believe that the IPO is the best way to market our shares,” a BASF spokeswoman said on Monday.

However, in a statement from LetterOne, “Short-term stakeholder pressure on BASF jeopardizes the important long-term role WDAG should play in achieving sustainable energy safety and affordability. I am more and more concerned about the possibility. “

“BASF’s dedication to IPOs encourages WD AG to pursue value-added activities, including potentially beneficial and additional M & A opportunities that have shown that BASF does not support. I’m hindering you. “

LetterOne also said IPOs could lead to excessive dividends that weigh on long-term investments, and the market is currently avoiding Russia-related assets, imposing unfair discounts on businesses.

German chemical giant BASF owns 67% of Wintershall Dea’s common stock, or a total of 72.7% when considering preferred stock. Russian billionaire Mikhail Fridman’s LetterOne investor group, former Dea owner, holds the rest.

The dispute between owners was first reported by the Financial Times.

(Report by Patricia Weiss Report by Paul Carrel and Edited by Emelia Sithole-Matarise and David Goodman by Ludwig Burger)

https://www.oedigital.com/news/493922-basf-presses-for-wintershall-dea-ipo-in-dispute-with-co-owner BASF is in dispute over Wintershall Dea IPO

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