Permira pledges to continue BorsodChem investment strategy
First Chemical Holding, a vehicle set up by Permira, Europe's largest private equity fund, to purchase Hungarian chemicals company BorsodChem Nyrt, has said in a statement it will continue BorsodChem's €500 million investment strategy.
BorsodChem shareholders approved the strategy, which involves investments to take place between 2007 and 2011, at a general meeting in April. The strategy would boost BorsodChem's TDI capacity from 160,000 tons a year to 250,000 tones by 2009, while raising its annual MDI capacity from 200,000 tons to 400,000 tons by 2011. BorsodChem would not expand its PVC production, but would keep it ready for a future consolidation of the industry according to the strategy.
As a result of the investments, BorsodChem's annual revenue is expected to double to €1.6 billion by 2011. Its EBITDA is expected to grow to €300 million-€400 million during the same period.
The European Commission, in its capacity as the EU competition authority, on Thursday approved First Chemical Holding's buyout offer for BorsodChem. The offer, which is at Ft 3,000 per share, also started Thursday and will be open until December 15. The buyout offer values BorsodChem at Ft 257.5 billion or around €1 billion, or Ft 238.5 billion excluding employee shares. The buyout will be leveraged, with First Chemical Holding shareholders putting up 45% of the purchase price, and covering the rest with bank loans.
ADVERTISEMENT
MNB Int'l Reserves Rise EUR 579 mln in November
Gov't to Launch HUF 20 bln Workers Hostel Program
Retail Sales Fall 6.5% y.o.y. in October
Heineken Balaton Sound Announces 1st Phase Lineup
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.
