Kikkolux, wholly-owned by Permira Funds, signed option agreements on July 6 with the biggest shareholders of chemicals company BorsodChem Rt to purchase their shares, BorsodChem announced on Friday. Firthlion and Vienna Capital Partners together control 52% of the company.
The statement also said Kikkolux had informed the board of its potential intention to make a takeover bid for the remaining shares of the company. The options are at a price of Ft 3,000 per BorsodChem share, and can be called any time between July 6 and October 31, 2006. The options are for all BorsodChem shares held by Firthlion, making up 26.158% BorsodChem voting rights, as well as for all the shares held by Vienna Capital Industrie Beteiligungen, constituting 21.83% of voting rights.
Firthlion is a London-based company owned by Russian businessman Megdet Rahimkulov and his family. Vienna Capital Industrie Beteiligungen is wholly owned by Vienna Capital Partners.
Permira plans to make a public offer for the outstanding shares of BorsodChem at the same per-share price upon the satisfactory completion of full-scale due diligence at the company and depending on the availability of financing, Kikkolux said in a letter sent to BorsodChem's board on Thursday. Kikkolux also presented the board letters of support regarding the transactions issued by the Royal Bank of Scotland, Lehman Brothers Europe and HSBC Bank to demonstrate the seriousness of its plans.
BorsodChem's board said that it decided to allow Kikkolux as a potential bidder to perform at its own cost due diligence on the company after signing a confidentiality agreement.
Permira Funds, with capital in excess of €20 billion, is the largest private equity fund in Europe.