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BorsodChem owners ready to inject cash into company

The owners of Hungarian chemicals company BorsodChem are ready to inject as much capital into the company as they must to ensure its continued operation and put it back on the growth path, BorsodChem chairman-CEO Wolfgang Buchele told MTI.

“We have come close to a consensus-based solution for BorsodChem's future in the long term,” Buchele said, adding that an agreement between majority owner Permira Funds and strategic investor Wanhua could be signed in the coming weeks.

The agreement addresses questions that were left open in a preliminary agreement signed in October, he said. Under it, Permira and Vienna Capital Partners will continue to be majority owners in BorsodChem for the next three years, he added.

Wanhua recently purchased about 75%of BorsodChem's mezzanine loans and started talks with Permira. Permira took over about €200 million in mezzanine loans -- attached to rights for about 19% of BorsodChem shares -- when it acquired the company in 2006.

Permira and Vienna Capital Partners said earlier they welcomed Wanhua as a strategic partner, but not as a majority owner. (MTI – Econews)