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| Consensual agreement achieved between Permira Funds/VCP and Wanhua on BorsodChem’s financial restructuring |
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Budapest, 25 February 2010 – Hungarian isocyanate producer BorsodChem Zrt. announces that, after several months of intense negotiations, Permira Funds and VCP Capital Partners, the company’s owners, and Wanhua Industrial Group (Wanhua), a strategic investor, have agreed on a consensual restructuring of the capital structure of BorsodChem. The current consensual solution will stabilize the operations of BorsodChem and provide the company with significant further financial flexibility and a solid platform for long term growth.
As a part of the current agreement Wanhua will supply an initial funding of approximate EUR 30 million to BorsodChem.
Upon completion of the restructuring process, Wanhua will provide BorsodChem with additional financing of EUR 110 million. The company will use the new funds of EUR 140 million in total, which will be provided on a senior basis, to complete the construction of the new TDI 2 (Toulene di-isocyanate) plant and the new Nitric Acid plant as well as for general corporate purposes. As soon as the restructuring deal is completed, Wanhua may exercise a call option to acquire Permira Funds/VCP’s entire stake in BorsodChem within the next 24 months. All parties agreed that the details of the transaction are under non-disclosure.
This consensual agreement and the related funding are all subject to Senior and Mezzanine Lenders’ approval.
“The new funds come at the right time when the company is preparing to restart the halted investment program. I am grateful for Wanhua’s contribution which I hope Senior and Mezzanine Lenders will approve. BorsodChem is dedicated to completing the TDI 2 and the Nitric Acid investment as quickly as possible. We expect the returns from the new plants to significantly further improve the profitability of the company” – says Wolfgang Büchele, Chairman and CEO of BorsodChem.
“Wanhua is pleased to be an integral part of the restructuring solution for BorsodChem, and believes that the current agreement represents a win-win solution for all parties, including the company’s customers, suppliers, employees and stakeholders. Once Wanhua has acquired full control of the company, we plan to work with the current management and continue relying on VCP’s local expertise. With our operational and technological expertise as well as additional capital investment, we are committed to playing a key role in growing the business locally and improving employment opportunities in Hungary.“ – Jason Ding, Chief Executive Officer of Wanhua Industrial Group comments.
“Permira is glad that our talks with Wanhua have come to a successful completion. During the past months we have come to the conviction that Wanhua is an investor fully committed to the long term future of BorsodChem and will continue on the growth path initiated by Permira. We believe that this consensual agreement will give suppliers, customers and employees a stable perspective.“ – says Christian Neuss, Partner at Permira.
About BorsodChem
BorsodChem is an important European chemicals producer with two main product groups: polyurethane raw materials (MDI, TDI) and vinyls (PVC resins and compounds, caustic soda). It sells more than half of its output on Western European markets. A significant amount of its production is sold to customers in Central and Eastern Europe. BorsodChem is establishing an increasingly relevant position outside Europe.
About Wanhua Industrial Group
Wanhua is the largest isocyanate producer in the Asia Pacific region. Wanhua is a global technology leader in the industry with the world's largest and most integrated isocynate manufacturing complex coming into production in 2010. Wanhua sells its products into 40 countries across North America, Western and Eastern Europe, Japan, the Middle East and South East Asia. For more information, please visit the website at www.wanhuagroup.com
About Permira
Permira is a European private equity firm with a global reach. The firm advises funds with a total committed capital of approximately €20 billion (US$28 billion). Our funds, raised from pension funds and other institutions, make long-term investments in companies with the ambition of transforming their performance and driving sustainable growth. Permira is wholly independent and owned by its Partners. The firm's teams are based in Frankfurt, Guernsey, Hong Kong, London, Luxembourg, Madrid, Menlo Park, Milan, New York, Paris, Stockholm and Tokyo. They specialise in five key sectors of activity: Consumer, Financial Services, Healthcare, Industrials and TMT. The Permira Funds have made over 190 private equity investments since 1985 and have returned €16 billion to their investors over the past decade. For more information visit: www.permira.com
About VCP
VCP is a leading independent investment company and financial advisor in Converging Europe. VCP focuses on corporate finance and selective direct investments in companies with high potential for growth. With offices located in Vienna, Zagreb, and Warsaw, strengthened by a comprehensive network of cooperation partners, VCP possess the critical local presence, knowledge and cross-cultural understanding, essential to execute transactions in a goal-oriented, time efficient and thorough manner. For more information visit: www.vcpag.com
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Quelle: Capital Mediamonitoring; 20100225 |
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© VCP AG 2010
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