China's Wanhua Industrial Group has raised its stake to 96% from the previous 38% in Hungarian chemical company BorsodChem in a EUR 1.23 billion transaction, Wanhua chairman Jason Dong announced on Tuesday.
The agreement on the transaction was signed on Monday, Dong said. The remaining 4% of BorsodChem's shares are owned by the company's creditors.
Wanhua acquired a 38% stake in BorsodChem together with an option to purchase further stakes from the previous majority shareholders, Permira/Vienna Capital Partners last June. Wanhua paid back part of BorsodChem's EUR 1 billion stock of debt and restructured the rest.
Wanhua said earlier that it planed to raise its stake to 100% in the company and to make BorsodChem responsible for the operations of the Wanhua group in Europe, the Middle East and Africa. With BorsodChem becoming the group's full member, Wanhua will take third place among the world's biggest isocyanate producers, the company said earlier. Wanhua plans to sell BorsodChem's isocyanate products to its European clients and will help BorsodChem's TDI sales on Asian markets. Wanhua will share its technological know-how with BorsodChem, as well as its experience gained in the isocyanate sector and MDI production in particular over the past twenty years as well as its advanced gas-phase TDI technology. (BBJ)