Significant Events
Coronavirus pandemic
The coronavirus pandemic continued to adversely influence the global economy. After the drop in demand in our main customer industries reached its peak in the second quarter of 2020, we saw a significant rebound in demand in the third quarter of 2020. The steps taken by Covestro in previous quarters to protect the health of all employees, guarantee our delivery capability, and safeguard Covestro's strong liquidity position are still in place. These include a wide range of health, safety and hygiene measures in effect at our sites. Depending on the local situation in each case, some staff, particularly employees in administrative departments, work from home. Production at our sites was unaffected by the coronavirus pandemic in the third quarter of 2020.
Covestro's Board of Management continues to monitor the worldwide development of the coronavirus pandemic. Existing measures are modified or expanded as required in line with recommendations and instructions issued by the relevant governments and committees of experts.
Other events
Following a resolution by Covestro AG's Supervisory Board, in July 2020 the contract of Board of Management member Dr. Thomas Toepfer was extended prior to its expiration for a five-year term running from April 1, 2021, to March 31, 2026. Dr. Toepfer has been CFO of the company since April 1, 2018, and additionally holds the position of Labor Director.
Covestro's Annual General Meeting (AGM) took place virtually for the first time on July 30, 2020. A fiscal 2019 dividend of €1.20 per share carrying dividend rights was approved at the AGM. The total amount of €219 million was paid out on August 4, 2020.
On August 31, 2020, the Higher Administrative Court in Münster ruled against the complaints brought by several individual plaintiffs against the planning permission decision by Düsseldorf's district government approving the construction and operation of a carbon monoxide pipeline from Dormagen to Krefeld-Uerdingen. The Higher Administrative Court determined that the complaints were entirely unfounded, and the planning permission decision was unconditionally lawful. In addition, the Higher Administrative Court rejected an appeal against its ruling. The plaintiffs can now file an appeal against denial of leave to appeal with the Federal Administrative Court.
On September 30, 2020, Covestro signed an agreement to acquire the Resins & Functional Materials business (RFM) of DSM for a preliminary purchase price of €1.6 billion. The deal aims to grow Covestro's sustainable and innovative business activities in support of the long-term corporate strategy. Integrating RFM into the Coatings, Adhesives, Specialties segment significantly expands the company's portfolio in the high-growth sustainable coating resins market. In connection with the announced acquisition Covestro successfully completed on October 13, 2020, a capital increase comprising 10,200,000 no-par bearer shares that were placed through partial utilization of Authorized Capital 2020. The gross proceeds amount to €447 million before commission and costs and will be used to finance part of the purchase price.