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PSzÁF orders supplement for BorsodChem buyout offer

Hungarian financial market regulator PSZAF on Monday said it had requested additional information to be filed for a buyout offer of chemicals company BorsodChem Nyrt by First Chemical Holding. It also said it had closed an investigation into market circumstances affecting influence in the company without taking any further measures.

The PSzÁF said First Chemical Holding must supplement its buyout offer to reflect changes to an agreement the company has with VCP Divestment and Kikkolux. First Chemical Holding announced the buyout offer on behalf of VCP Divestment and Kikkolux. First Chemical Holding must present the supplemented buyout offer within five days or PSzÁF  will rescind approval of the buyout offer.One month earlier, PSzÁF  suspended First Chemical Holding's buyout offer for BorsodChem pending the conclusion of an investigation to determine whether rules regarding the acquisition of companies had been broken. First Chemical Holding announced the buyout offer at a price of Ft 3,000 per share on September 20. First Chemical Holding, a company registered in Hungary was set up by Permira Funds, the owner of Kikkolux for the public buyout. Permira Funds is the largest private equity fund in Europe, with capital in excess of €20 billion ($25.5 billion). If the offer is successfully completed, VCP, which currently owns 21.5% of BorsodChem shares (21.83% of voting rights), will indirectly hold close to 13% of BorsodChem, instead of selling all of its BorsodChem shares to Kikkolux as agreed under an option agreement signed in July and modified just days before First Chemical Holding's buyout offer was announced. The earlier option agreement is also for Ft 3,000 per share. Firthlion, another big BorsodChem shareholder which holds a similar-condition options agreement with Kikkolux, will sell all its BorsodChem shares if the purchase offer is successful. (Mti-Eco)