Bulletin: BASF's Disposal Of Wintershall Dea Shares Will Improve Rating Headroom In 2024

FRANKFURT (S&P Global Ratings) Dec. 22, 2023--S&P Global Ratings today said that BASF SE's (A-/Stable/A-2) announced divestment of shares in Wintershall Dea will help it navigate challenging market conditions in 2024 and provide more rating headroom, assuming the cash proceeds will be used to support organic growth and strengthen the balance sheet. Yesterday, Wintershall Dea's shareholders--BASF and LetterOne--signed a business combination agreement with Harbour Energy PLC (Harbour) to transfer Wintershall Dea's non-Russian related business (excluding the German gas transport business) to Harbour. At closing, which is targeted for fourth-quarter 2024, BASF will receive a cash consideration of about $1.56 billion and new shares in the enlarged, publicly listed Harbour. This will equate to a shareholding of 39.6%, which can be

...December 22, 2023 FRANKFURT (S&P Global Ratings) Dec. 22, 2023--S&P Global Ratings today said that BASF SE's (A-/Stable/A-2) announced divestment of shares in Wintershall Dea will help it navigate challenging market conditions in 2024 and provide more rating headroom, assuming the cash proceeds will be used to support organic growth and strengthen the balance sheet. Yesterday, Wintershall Dea's shareholders--BASF and LetterOne--signed a business combination agreement with Harbour Energy PLC (Harbour) to transfer Wintershall Dea's non-Russian related business (excluding the German gas transport business) to Harbour. At closing, which is targeted for fourth-quarter 2024, BASF will receive a cash consideration of about $1.56 billion and new shares in the enlarged, publicly listed Harbour. This will equate to a shareholding of 39.6%, which can be gradually monetized on the stock exchange after a lock-up period of six months post closing. The $1.56 billion cash proceeds in 2024 will translate...

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