Rhône-Poulenc launches the process of listing its stake in Rhodia
News release
(Paris, September 16, 1999 ) --- Rhône-Poulenc S.A. (NYSE: RP) launched the first step (pre-marketing) in the process of divesting its remaining 67.3% stake in Rhodia S.A. (NYSE: RHA), its specialty chemicals subsidiary. The entire transaction should be finalized by mid-October.
This divestment will be structured as a secondary placement of Rhodia shares, of approximately 40 to 50 % of the total capital of Rhodia and an issuance by Rhône-Poulenc of notes exchangeable into Rhodia shares for the remaining 25 to 15%.
The secondary placement of Rhodia shares will take the form of:
1/ a global offering, with the following main characteristics:
- the share price will be set according to the "bookbuilding" procedure;
- an international roadshow and bookbuilding exercise will begin at the end of September following the close of the pre-marketing period.
2/ a French retail offering, representing at least 10% of the secondary placement, with the following main characteristics:
- a priority allocation of shares will be reserved for Rhodia shareholders of record on August 31, 1999. This priority allocation will be limited to a maximum of 75 shares per order;
- the retail offering will take place during the first half of October.
These Rhodia shares will be listed on both the Paris and New York Stock Exchanges.