In a statement made today, Schaeffler AG and its holding company Schaeffler Verwaltungs GmbH had placed 7.8 million of its shares in Continental AG for sale at EUR122.50. Shaeffler is a known manufacturer of bearings for autos and industrial equipment. The shares were subsequently sold at a 3.5% discount from yesterday's closing share price. The exit allowed Schaeffler to raise around EUR950 million or USD1.3 billion.

The amount raised from the sale was to cover the borrowings Schaeffler had made to take over Continental in early 2009. The Schaeffler Group had borrowed a total of EUR10.3 billion and has since resorted to refinancing its debt and reducing its ownership with Continental, a Hanover, Germany-based company, to decrease expenses.

The company also said that it would also be dipping from its excess cash flow to get EUR325 million in paying the manufacturer's total debt at EUR1.28 billion. 

The Herzogenaurach, Germany-based company now has a 46% remaining stake in Continental. When asked if Schaeffler would be reducing its holding in Continental more in the future, spokesman Knut Engelmann said, "There are no plans to further decrease the shareholding in Continental."