Regulator clears Permira's bid for Borsodchem
Permira's buyout bid for chemicals producer Borsodchem was approved by Hungary's State Financial Supervisory Authority (PSzÁF) after a six-week wait.
London-based Permira Advisers LLP bid Ft 3,000 a share for all of Borsodchem Nyrt last month in an offer valuing the company at Ft 228.5 billion ($1.1 billion). Permira also has an option to buy a 52% stake in Borsodchem from Firthlion Ltd., owned by Megdet Rahimkulov, Hungary's richest man, and Vienna Capital Partners, an Austrian investment company.
Permira „today published the final documents for its public purchase offer for all shares of Borsodchem after receiving an approval” from the regulator, the company said in an e-mailed statement yesterday. Permira, through its First Chemical Holding Vagyonkezelo Kft. investment vehicle, applied on September 19 for approval. The Hungarian regulator on October 3 said it delayed clearance to examine whether the offer was in line with market rules.
The purchase of Borsodchem is Permira's first in eastern Europe. The buyout firm is looking to benefit from growing demand for plastics in the region, where economic growth is outpacing that in western Europe. Borsodchem shares rose 2.1% to Ft 2,975 yesterday. (Bloomberg)
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