Borsodchem Q2 net plunges on weak forint
Raw material prices also rose in the period. PVC resin prices increased to € 939 a ton from € 892 a ton in the Q1 while ethylene, which is used in PVC production, climbed to € 865 a ton from € 785, decreasing Borsodchem's profit by € 33 on each ton of PVC it made. The company's operating profit, which excludes losses on foreign exchange loans, increased 85% to Ft 6.6 billion in the Q2, Borsodchem said. Permira said July 13 it may publish a public offer for all Borsodchem shares in September. The buyout company, which holds an option to buy a combined 52% of Borsodchem from two investors, said it would offer Ft 3,000 for each share, valuing Borsodchem at Ft 228.5 billion ($1.1 billion). Borsodchem has spent € 300 million ($358 million) expanding production the past three years and plans to invest a further € 500 million ($644.3 million) to boost production of foams used in the building and automotive industries, Borsodchem CEO Kay Gugler said in April. (Bloomberg)
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