The on-off IPO of Evonik Industries has once again been canned owing to tough market conditions, leaving the German chemicals business in the hands of the RAG Foundation and CVC Capital Partners.
The listing has been postponed until RAG, the trust tasked with funding Germany's state-subsidised coal mines, can raise enough from the markets.
An IPO was mooted as recently as last month but RAG needs to raise enough to help fund liabilities when the government stops subsidising mining in 2018.
It took the decision to pull the sale until there is better visibility on the eurozone crisis and investors are comfortable with an offering of its scale.
Evonik intended to list in 2008, but changed its mind amid the start of the financial downturn.
Instead, RAG sought financing from a third party and CVC moved in to take a 25 per cent stake in June 2008.
Evonik was formed in September 2007 after RAG Foundation split off its chemicals, energy and real estate businesses.
The move was motivated by RAG's core mining unit operating under government contract and its inability to pay shareholder dividends from its other arms due to its relationship with the German state.