Continental and Phoenix Boards Agree Exchange Ratio

The merger of ContiTech and Phoenix moved a step closer today when the boards of the companies made a profit and loss absorption agreement. In line with the valuation agreed by both parties, Continental will hold 95.78 per cent of voting stock of ContiTech once the merger has taken effect. Continental currently holds 75.73 per cent of Phoenix’s voting stock.

During the merger ContiTech, currently known as ContiTech Holding GmbH, will change its legal status. In the future the company will be known as ContiTech AG. Continental says it is unlikely to make an initial public offering immediately after the merger is completed, but the company’s management has hinted that an IPO is possible.