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| UK private equity fund Permira makes takeover bid for Hungarian chemical firm BorsodChem |
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Hungarian chemicals firm BorsodChem (BC) announced on Friday that UK-based private equity fund Permira has indicated its potential intention to make a takeover bid for the ordinary shares of BC.
"The Board of Directors of BC ... received a letter yesterday in which ... Permira Funds, which with a capital of more than EUR 20 bln is among the largest private equity firms in Europe, informed the board of its potential intention to make a takeover bid for the ordinary shares of the company," BC said in a statement.
The takeover intent was indicated through Permira's fully-owned subsidiary, Luxembourg-registered Kikkolux, which has entered into option agreements with BC's main shareholders, and also plans to make the same offer of paying HUF 3,000 per share to all BC shareholders.
Through Kikkolux, Permira Funds entered into option agreements with the major shareholders of the company, Firthlion Ltd, an offshore firm controlled by Russian businessman Megdet Rahimkulov, and Vienna Capital Partners, together controlling an approximately 52% stake in BorsodChem.
The option agreements entitle Permira to acquire the shares at a price of HUF 3,000 per share until October 31. Permira said it intends to launch a public takeover offer to acquire the outstanding shares of the company after the completion of a full-scale due diligence and the availability of financing.
The statement added that the transaction to be implemented by Permira Funds is supported by the Royal Bank of Scotland, Lehman Brothers Europe Limited and HSBC Bank.
Trading in BC shares was suspended at 10:00 CET for the remainder of the day Friday on the Budapest Stock Exchange. The last trade in shares was struck at HUF 2,700, or 10% lower than Permira's offer price of HUF 3,000.
BorsodChem added that on Friday its Board of Directors has decided to allow Kikkolux as a potential bidder to perform a due diligence investigation at its own cost.
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Source: Interfax, 07 July 2006 |
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