KPMG puts value of $21.12B on Schering AG

Schering AG says that, in connection with its takeover by fellow German group Bayer (Marketletters passim), a domination and profit and loss transfer agreement between Dritte BV GmbH as the controlling company and Schering as the dependent firm is to be proposed for approval at an extraordinary general meeting planned for September 2006.

In this regard, the executive boards of both companies, as well as the management of Dritte, instructed KPMG Deutsche Treuhand-Gesellschaft with the valuation of Schering. KPMG has now informed Schering that, on completion of its valuation work, the value of the latter amounts to 16.72 billion euros ($21.12 billion). This is equivalent to a value of 87.63 euros per share, which is above the volume-weighted average share price of the past three months and represents an appropriate compensation payment in the view of KPMG, according to which, fair compensation for future omitted dividend amounts to 3.62 per share. KPMG has already taken into account the financial results of Schering as of June 30 (Marketletter July 31).