The Luxembourg-based Kikkolux S.ar.l., part of Permira Funds, acquired a 52-per-cent stake in Kazincbarcika-based...
The Luxembourg-based Kikkolux S.ar.l., part of Permira Funds, acquired a 52-per-cent stake in Kazincbarcika-based BorsodChem Rt. from its two majority shareholders, Megdet Rahimkulov and Vienna Capital Partners. The announced price is HUF 3000 (EUR 10.6) per share.
This is Permira Funds first investment on the Hungarian market. It already bought a stake in local TV2 network from Luxembourg-based SBS Broadcasting.
BorsodChem Rt., located in North-Eastern Hungary, is the legal successor of Borsodi Vegyi Kombinat (Borsod Chemical Complex), which was set up in 1949 with the intention of providing agricultural players in north-eastern part of Hungary with nitrogen-containing fertilisers. The plant produced its first batch of fertilisers in 1955.
In 1971, the plants capacity was expanded to 24 000 tonnes per year, and in 1978 to 150 000 tonnes per year. Based on the locally available PVC feedstock, the company installed the first plastics processing trains and later dynamically developed the plastics processing business.
Besides the fine chemicals production done before, further intermediate products (phosgene and phosgene-based products) were added to the product range of the Company. The fine chemicals business unit was established with the aim of manufacturing fertilisers and additives for plastics industry.
In 1991, with the commissioning of the MDI Plant a greatly different business was started - production of polyurethane chemicals. The 1990-91 years were a turning point in the history of the Company.
In 1991 Borsodchem Rt. was established as a limited liability company. During the past few years, the company modernised its organisational structure in a stepwise fashion. The chemical complex structure was converted into an organisation concentrating the resources on the core businesses.
Subsequent to the restructuring process certain activities ceased (production of fertilisers), some activities were transferred into joint ventures (crop protection agents), and some were sold by Borsodchem to the traditional player of the sector (industrial gases). During the consolidation efforts and the preparation phase for flotation on the stock exchange, the company achieved firm results in increasing efficiency and productivity, thus creating the groundwork for privatisation through an IPO.
Since March 1996 BorsodChem Rt. shares are listed and traded both on Budapest and London Stock Exchanges. A very important acquisition step was carried out last year, when in April 2000 the Company bought a 97.5-per-cent stake in Moravské Chemické Závody, Czech aniline producer.
The ongoing expansion and the process of becoming an international group have made BorsodChem a more stable chemical company with promising growth potential. Its excellent business performance is corroborated by its latest annual report. It reported record sales revenues and profits. Growing profit margin are also indicative of the companys successful expansion and business efficiency. Currently, BorsodChem has 4200 employees.