First Chemical Holding, a Hungarian purchase vehicle set up by private equity fund Permira announced late on Monday that it was offered a total of 54,824,577 BorsodChem shares in a public buyout offer closed on December 15.
First Chemical Holding offered Ft 3,000 per BorsodChem share in the public buyout offer it made on behalf of Permira-Fund-member Kikkolux Group and the Austrian company Vienna Capital Partners (VCP). VCP currently holds 21.5% of BorsodChem shares, and will acquire a 13% stake in First Chemical Holding on successful completion of the offer. The combined stake of Kikkolux and VCP rose to 92.9% as a result of the buyout, including the effect of a reduction in registered capital which occurred after an EGM on October 13 decided to withdraw a part of BorsodChem employee shares, MTI learnt.
The capital reduction is yet to be registered. Permira Funds is the largest private equity fund in Europe, with capital in excess of €20 billion. The offer will be closed on December 22, when First Chemical Holding pays Ft 164.475 billion for the shares it was offered. First Chemical Holding said earlier it would delist BorsodChem's shares from the bourses in Budapest and Warsaw as well as its GDRs from the London Stock Exchange if the buyout offer is successful.
Permira plans to go ahead with a €500 million development strategy approved by BorsodChem this spring, Thomas Jetter, the director of the fund's chemical division, said in November. The fund will pull out of the company around the time the investments are completed, in 2010 and 2011, he said, adding that the pull-out could take the form of a re-listing of the company's shares on the stock exchange.
The pull-out will depend on the success of the planned developments, expected to double BorsodChem's TDI and MDI capacity and transform BorsodChem from a regional player into a "true European company", Jetter said. Hungarian financial market regulator PSZAF approved the public buyout offer for BorsodChem on November 7. The European Commission approved the transaction two days later. (Mti-Eco)