CVC sells further shares in Evonik ahead of IPO

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CVC and Rag Foundation have sold a further 4.6% stake in German chemicals business Evonik, reducing their stakes by around 6% each in total, ahead of a renewed attempt at listing the business.

The investors announced on Monday that they have sold 4.6% of Evonik to Singapore's sovereign wealth fund Temasek. The value of the sale was said to be around €600m, which would lift the company's enterprise value to around €14bn. The investors confirmed that this concluded their private placement ahead of the IPO.

Evonik already prepared for an IPO last year and the year before, but cancelled both times due to market volatility. The company's two owners, CVC and the Rag Foundation, sold parts of their stakes in Evonik to institutional investors last month and announced renewed preparations for an IPO this year.

The flotation of the business is intended to secure income to cover the liabilities associated with the ending of subsidised coal mining in Germany in 2018. Evonik had revenues of €14.5bn in 2011, generating an EBITDA of €2.8bn.

CVC employed a similar strategy of private placement prior to the listing of its portfolio company Formula One Group last year.