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| BorsodChem to sell at HUF 3,000 – One of Europe’s largest private equity firms in the backyard |
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The two major owners of BorsodChem signed an option deal at a share price of HUF 3,000 with Permira, one of Europe’s largest private equity firms. The fund recently collecting EUR 10 bn will decide whether to call the option until end-October this year. If Permira wants to buy BC, it has to submit its purchase offer by this date.
Permira, one of Europe’s largest private equity firms, gained an option for acquiring 52% of BC at a share price of HUF 3,000. The news was announced on Friday, shortly before the end of trading. As a result, trading in BC shares suspended at 10 a.m. did nor resume on Friday. Based on its announcement, Thursday night BC received the notification of Kikkolux, a Luxembourg-based company controlled by Permira, about the option for 52% of its listed shares (39 million shares in total) currently held by VCP and Firthlion. Pending due diligence, Permira is willing to make a public buyout offer at a share price of HUF 3,000. To demonstrate the seriousness of its intentions, Kikkolux submitted to the board letters of intent for financing issued by the Royal Bank of Scotland, Lehman Brothers Europe Limited and HSBC Bank Plc. At its extraordinary meeting held Friday afternoon, the Board of BC approved due diligence. The option deal is valid until end-October. If the transaction is realized, it may well be completed by the end of the year. Permira will then have two options: it either sells BC to a strategic investor or it further increases the value of BC to resell it at a later stage. (If it chooses the second option, it will hopefully use BSE as the primary market of BC shares.) The expected yield of private equity firms is beyond HUF 20%. “Permira is surely not a dummy for a strategic investor, as it would be very costly to use a reputable company like Permira for this purpose”, said an expert wishing not to reveal his name. If realized, this transparent and fair deal will offer a highly profitable exit for small investors. It will also enable VCP to benefit from the largest investment project of its history. And it will make Megdet Rahimkulov a friend of small investors again as it is now the third time it gives them a piece of the cake in an investment transaction. BSE benefited from BC’s decision to reenter BC in the stock exchange in compliance with the new European capital market standards in 2004. Now the acquisition of BC, the company generating the fifth largest average turnover at BSE, spells bad news for the market, small and large investors alike. Nevertheless, the transaction may also have a positive message in the current gloomy Hungarian money and capital market environment.
EUR 20 bn in the background
Kikkolux is owned by Permira, a private equity firm with more than EUR 20 bn invested. Permira funds are managed Frankfurt-based Permira Beteiligungsberatung GmbH. As it was announced on 3 July, Permira collected EUR 10 bn for its new fund called Permira IV which is now the largest fund established by a private equity firm in Europe. Permira IV was established to complete complex large-scale acquisitions in Europe, the United States and Japan.
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Quelle: Napi Gazdaság, 10 July 2006 |
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© VCP AG 2010
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