Reuters: Private Equity: UPDATE 1-Evonik IPO possible in first half of 2012 -owner

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UPDATE 1-Evonik IPO possible in first half of 2012 -owner Mar 23rd 2012, 15:12 Fri Mar 23, 2012 11:12am EDT * Evonik board authorised to resume IPO preparations * RAG foundation to take final decision after talks with CVC * Transaction to value Evonik at 15 bln euros - sources * Contract of RAG foundation head extended (Adds details, background) FRANKFURT, March 23 (Reuters) - German industrial conglomerate Evonik may list on the stock exchange in the first half, its owner said, becoming the latest firm to revive initial public offering (IPO) plans after a three-month rally in stock markets. The RAG Foundation, which owns a 75 percent stake, said on Friday it had authorised the board to resume preparations for an IPO and a decision on the stock offering would be made after talks with 25-percent owner CVC and Evonik's board. The foundation hopes to sell shares worth more than 1 billion euros ($1.3 billion) in a transaction that would value the company at no less than 15 billion euros, people with knowledge of the matter have told Reuters. Such a figure would be roughly in line with the valuation of rivals. Peer BASF trades at 5.2 times last year's earnings before interest, taxes, depreciation and amortisation. At the same multiple, Evonik, which posted operating earnings of 2.8 billion euros last year, would be worth 14.6 billion euros. MANAGEMENT To prevent the share sale being hampered by management uncertainties, the contract of the current head of the RAG foundation, Wilhelm Bonse-Geuking, was extended by a year. Investors want to see management in place at all levels before they buy a company's shares, investment bankers said. A source close to the matter said Bonse-Geuking, whose original mandate was to end in June, was ready to step down as soon as a successor was found. RAG Foundation's executive committee, the so-called board of trustees, plans to decide on May 23 whether to go ahead with the listing, sources had said. The foundation had begun IPO preparations last year but put the plans on ice in September in view of the weak financial markets at that time. Companies like Advent's H.C. Starck and Siemens' Osram also postponed their listing due to jittery markets. Meanwhile, demand has returned to a certain extent and investors have been rushing to buy shares of Switzerland's DKSH , which helps companies market and distribute goods in Asia, and of Dutch cable company Ziggo. ($1 = 0.7579 euro) (Reporting by Tom Kaeckenhoff and; Matthias Inverardi; Writing by Arno Schuetze; Editing by Helen Massy-Beresford) Link this Share this Digg this Email Reprints

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