China's Wanhua Industrial Group has reached an agreement to make €140 million available to Hungarian chemicals company BorsodChem on the condition it can exercise a purchase option for all BorsodChem shares held by Permira Funds and Vienna Capital Partners (VCP), the parties said.
Wanhua will make €30 million available to BorsodChem immediately and a further €110 million when the share purchase is closed. The parties did not reveal any other details of the transaction.
The agreement, which must still be approved by BorsodChem's senior bank and mezzanine lenders, was reached after months of negotiations between Permira and Wanhua. The talks were started after Wanhua purchased about 75% of BorsodChem's mezzanine loans. 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 VCP said earlier they welcomed Wanhua as a strategic partner, but not as a majority owner. (MTI – Econews)