By Liz White, UT staff
Kazincbarcika, Hungary-Isocyanates producer Borsodchem Rt announced Friday 7 July that Kikkolux sarl of Luxembourg has made a bid to buy the company.
Kikkolux, owned by Permira Funds, one of the largest private equity groups in Europe, has options to buy shares making up about 53 percent of Borsodchem's share capital, the group said.
These shares are currently controlled 26.16 percent by Firthlion Ltd, a London-based group owned by members of the Russian Rahimkulov family, and 21.83 percent by VCP Industrie Beteiligungen AG, operated by Austrian investment group Vienna Capital Partners Unternehmensberatungs AG.
VCP formerly owned 92 percent of Hungarian chemicals group Borsodchem, but sold 70 percent of its issued share capital in 2004, retaining the 22 percent that Kikkolux intends to buy.
Borsodchem, which recently announced plans to invest Euro 500 million to expand both its TDI (toluene diisocyanate) and MDI (methylene diphenyl diisocyanate) capacity over the next five to six years, says it will allow the Luxembourg company appropriate access to perform a due diligence study.
According to Borsodchem's statement, Kikkolux said it will launch a public takeover to acquire the outstanding shares in BorsodChem subject to satisfactory completion of due diligence, at HUF 3000 ($13.65) a share.
Kikkolux has letters of intent on financing the transaction from Royal Bank of Scotland, Lehman Brothers Europe Ltd and HSBC Bank plc.
Borsodchem's plans would see its MDI capacity rise to 360 kilotonnes per annum by 2012, from 140 ktpa currently, while its TDI capacity would rise to 260 ktpa by that date, from its present 80 ktpa.
Pic: part of Borsodchem's MDI plant at Kazincbarcika.