Permira to Withdraw BorsodChem from Budapest Stock Exchange

12. Juli 2006, 00:00

Kazincbarcika-based BorsodChem Rt may be withdrawn from the Budapest Stock Exchange if Permira acquires more than...

Kazincbarcika-based BorsodChem Rt may be withdrawn from the Budapest Stock Exchange if Permira acquires more than 90 per cent of its shares.

Permira is negotiating with BorsodChems key shareholders Megdet Rahimkulov, one of Hungarys richest men and Austrian investment company Vienna Capital Partners (VCP) on the takeover of 52 per cent of registered ordinary shares at the price of HUF 3000 (EUR 10.7) per share. In addition, the company announced that will offer all minority shareholders to buy out their holdings at the same price per share.

Shortly after the announced receipt of the takeover bid from Permira Funds, credit rating agency Standard & Poors (S&P) placed its BB long-term rating on chemicals producer BorsodChem Rt on CreditWatch with a negative outlook.

Since March 1996 BorsodChem Rt. shares are listed and traded both on Budapest and London Stock Exchanges. Permira may reintroduce BorsodChem (BC) shares on the Budapest Stock Exchange after it sells the stake in five-to-six years.

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