German chemicals company Evonik Industries, which is backed by private equity firm CVC Capital Partners, is to sell a five per cent stake to Singapore sovereign wealth investor Temasek, according to Reuters.
Temasek will pay “considerably more” than €600m for the stake, report said.
In February, the company announced plans to again look at a potential IPO on the Frankfurt Stock Exchange.
According to its owners, private equity firm CVC Capital Partners and Germany’s RAG Foundation, the move is prompted by the improved capital market environment as well as investors’ growing interest in the shares.
CVC invested in the company back in September 2008, and owned a 25 per cent stake prior to the announced placement.
The private equity group is looking to divest a number of its holdings ahead of the launch of its latest €9bn buyout fund.
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