Permira to withdraw Borsodchem shares from Budapest Exchange
Permira Advisers LLP, Europe's biggest buyout firm, said it would delist Borsodchem Rt shares from the Budapest Stock Exchange should it successfully take over eastern Europe's biggest PVC plastic maker, Bloomberg reported. Permira wants to buy more than 90% of Borsodchem shares, Thomas Jetter, the company's head of chemical investments said at a press conference in Budapest today. London-based Permira may reintroduce Borsodchem shares on the Budapest bourse after it sells the stake in five-to-six years, Jetter said. Permira said last week it wants to buy Borsodchem in a takeover that would value the Hungarian company at about Ft 228.5 billion. Permira has options until the end of October to buy a combined 52% stake in Borsodchem from two shareholders for a price of Ft 3,000 a share. Remaining shares may be purchased at the same price. "The Ft 3,000 price is justifiable," Jetter said today. "Borsodchem is well-positioned to develop its PVC business further." Permira is planning to make its offer through Kikkolux S.ar.l., a company registered in Luxembourg, Borsodchem said in a statement July 7. Kikkolux has the option to by the majority stake in Borsodchem from Firthlion Ltd., owned by Megdet Rahimkulov, one of Hungary's richest men, and Vienna Capital Partners, an Austrian investment company. Permira supports Borsodchem's existing development plans and investment program, Jetter said. Borsodchem, based in Kazincbarcika, northeast Hungary, has spent €300 million the past three years to add products to its flagship PVC plastic. It's expanding production of two foams used in construction and car-making to meet growing demand from customers, Chief Executive Officer Kay Gugler said in April. Permira last week raised more than €10 billion for Europe's biggest buyout fund. Its investments in the chemicals industry have included German chemicals maker Cognis Deutschland GmbH & Co. and TFL Holding GmbH, a maker of chemicals used in leather production.
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.