BorsodChem
@
Hungary's BorsodChem will start test production at its new vinyl chloride monomer plant at Kazincbarcika, north-east Hungary, on Jan 3, CEO Laszlo Kovacs told Platts in a telephone interview Wednesday. The tests at the plant, which will boost VCM capacity from 180,000 mt/yr to 250,000-260,000 mt/yr, are scheduled to be completed by the end of February.
Luxembourg's Kikkolux has signed an option agreement on July 6,2006 to acquire up to a 47.99% stake in Hungarian chemicals producer BorsodChem, Kikkolux said in a statement on Monday. This would represent a 52.05% voting stake in the company.
Kikkolux said it was controlled by the Permira investment group.BorsodChem is a leading European integrated producer of isocyanate-based specialty chemicals and PVC. Isocyanates are the key building block for PU foams which are used in applications like furniture/bedding, construction, automotive or coatings & adhesives. BorsodChem is also a leading producer of PVC in the Central Eastern European region, with an estimated market share of 31%. BorsodChemfs core market is Europe and also sells its products in the Middle East, West and North Africa and Asia.
Strong underlying market dynamics combined with BorsodChemfs leading low cost production expertise provide the company with an opportunity to increase MDI/TDI capacity and to become Europefs leading TDI and MDI producer. The company is planning to more than double the current capacity for MDI and almost treble the capacity for TDI. These new production plants will go on line in 2009 for TDI and 2011 for MDI. The company also will expand into additional specialty MDI variants and polyurethane systems and solutions.
In December 2006, funds advised by Permira and Vienna Capital Partners acquired 89% of the BorsodChem share capital. Upon redemption of approx. 3m employee shares which is expected for February 2007, the company is expected to be taken fully private through a squeeze-out. The transaction value amounts to Euro1,630m.
Chlorine Unit
Chlorine production was commenced in 1962 in order to meet the chlorine demand necessary for PVC production. The electrolysis plant with mercury cathode technology, which is operating at present as well and the initial capacity of which was 110 kt/year, was built at the end of the seventies and we increased its capacity at the end of the eighties, it was expanded to the present capacity of 125 kt/year.
By having started up the MDI Unit, chlorine consumption began in the isocyanate production as well. Now chlorine, which is produced as well as purchased in small volume, is used as raw material by all the three major lines, i.e. PVC, MDI and TDI production. Our unit meets the environmental requirements (BAT) set for 2007 by Euro Chlor (Association of European Chlorine Producers) even at present, which provides the long-term operation of the unit. The capacity expansions of the company's lines demand extra chlorine volumes, which we intend to provide by building a unit operating with the latest - membrane-cell - technology.
Products of the Chlorine Unit - sold for external companies - are the following:
@
VCM Unit
Vinyl-chlorine production in the VCM Unit was commenced in 1978. Major product of the unit is vinyl-chlorine (VC), which is the raw material of PVC production. Ethylene-dichloride (EDC), which is the raw material of VC, is produced in the unit out of ethylene and chlorine using the method of direct chlorination and out of ethylene, hydrochloric acid and oxygen using the method of oxyhydrochlorination.
Original capacity of the unit is 160 kt VC/year, that of the direct chlorination unit is 136 kt EDC/year and that of the oxyhydrochloration unit is 125 kt EDC/year. In the course of the energy rationalisation programme having performed between 1986-1989 a new direct chlorination reactor was installed, which considerably reduced the consumption of heat energy and increased VC production capacity by 10 %.
Between 1996-1999 such an investment was implemented, which increased capacity as well as improved product quality and considered the protection of environment. It included a DCS reconstruction as well as the installation of an EDC furnace and an oxygen-based oxyhydrochlorination reactor. Thus the capacity of the direct chlorination reactor: 160 kt EDC/year, the capacity of the oxyhydrochlorination reactor is 220 kt EDC/year, while VC production capacity is 220 kt/year for the moment. Besides the utilisation of HCl gas originating from decomposition, the oxyhydrochlorination unit also uses hydrochloric gas forming as a by-product of MDI and TDI production.
The preparation of a new oxytechnological unit is in progress, the capacity of which will be the same as the present one. In all probability we will increase VCM production capacity up to 320 kt VC/year.
@
The
product produced by the Business Unit in the largest volume,
which amounts to nearly 40 % of BorsodChem Rt.'s sales revenues,
is the PVC resin. The company commissioned its first PVC unit
operating with the technology of Uhde Hoescht in 1963. The
capacity of this unit was 6 kt/year. In the last almost forty
years the company continuously expanded and modernised its
production capacity of PVC resin - in 1978 a unit operating with
a capacity of 150 thousand tons/year purchased
from the Japanese company called Shin-Etsu was started up - and through the
present production capacity of PVC resin amounting to 330 thousand
tons/year it
possesses one of the biggest and most up-to-date units of Central
Europe.
At the beginning of the nineties the company converted a part of
the 12 m3
autoclaves, which had been used for PVC production up to that
time, to the production of expandable polystyrene (EPS). The EPS capacity
of the Business Unit amounts to 14 thousand tons at present. As a result of our
research and development work aiming at the change of product
structure we widened our product range of PVC resin and EPS by
several PVC-based co-polymers.
As of 1971 BorsodChem Rt. also deals with the production and
development of initiators necessary for VC-polymerisation as well
as that of other auxiliary products. This R+D activity was
significantly widened from the second half of the nineties. In
1999 the Variable Peroxide Initiator unit was started up, which
is used for the production of initiators and where production is
carried on by outstanding safety conditions and in reliable and
good quality.
80 % of the products of the business unit are sold on export
marekts, while domestic sales - including our own consumption -
totals up to about 20 % of total sales. Our main export markets
are Italy, Poland, the member states of ex-Yugoslavia as well as
Germany, the Czech Republic, Slovakia and Spain.
The most important commercial task of the business unit is to
keep or increase its existing positions on logistically
favourable markets. The business unit continuously improves the
environmental condition of its units. It regards the working out
and the earliest possible installation of closed polymerisation
technology as the most important actual environmental task.
Mz@1973NΜnK[EPRvbNXNYPTgA1975NΜ|[hE|bNXό―20g
@@@@1967@|[hό―AZ`Zp
Compund
Regarding its basic activity, the Business Unit is a part of the PVC line that is an integrated compounder. Within sales plasticized cable granules and rigid granules for technical purposes (shutters and sidings) are of crucial importance.
The Business Unit produces dry blends and granules by processing 10 % of PVC resin manufactured by the PVC Business Unit. 90 % of dry blends produced this way is used by the Company's own subsidiaries in order to manufacture sheets, films and window profiles. In addition to compounding, the production of chlorinated polyethylene (CPE) also belongs to the activities of the Business Unit, the major part of which is exported. The CPE is used as an additive increasing impact resistance in PVC systems, but its applications as a thermoplastic elastomer (TPE) is becoming more widespread mainly in the fields of rubber and cable industry.
The Business Unit has efficient research and development background, which serves for the improvement of the numerous own-developed formulations as well as for developing new products and satisfying special customer demands. The R+D field also assists end-users in the form of technical services. In the field of research and development, the enhancement of quality as well as meeting the increasingly strict requirements of labour hygiene and environment protection are emphasised.
MDI
The
MDI production unit of the Polyurethane Business Unit, which was
originally working with the capacity of 25 kt/year, started to
produce crude, pure and modified MDI in 1990 on the basis of the
licence of the Japanese Mitsui Toatsu Chemicals Inc. and by the
co-operation of the company named Chisso Engineering Co. Setting
out from basic isocyanates, there is possibility for producing
different prepolymers of polyester and of polyether types.
Crude MDI is mostly used by the construction and the refrigerator
industry in order to produce firm insulation foams. Them major
field of use of pure and modified MDI is the shoe industry.
In the framework of BorsodChem Rt.'s investment programme the preparation of the several steps' capacity expansion of the Polyurethane Business Unit started in 1995.
As a result of the expansions, which were implemented with the help of the licensor company Mitsui Toatsu Chemicals Inc. and the designer company Chisso Engineering Co., the present capacity of the MDI unit reaches the product volume of 60 kt/year.
Parallel with the capacity expansions and in accordance with the aims of environmental protection most part of the liquid waste, which had been incinerated so far, are led back now to the technological process and the bright concentration and salt crystallisation unit was set into operation.
This unit employs an up-to-date European process, in the course of which the salty wastewater forming in bulk during MDI production is evaporated with the utilisation of the waste heat from the TDI and MDI units and crystallised salt is produced at the end of the line.
Crystallised salt is led back to the process of electrolysis and chlorine and caustic soda solution are produced of it again. By this method the waste generated by a process is converted into the raw material for an other one.
TDI
At the end of 1998 BorsodChem Rt. has made such a decision that it builds a TDI (toluylene-diisocyanate) Unit working with the capacity of 60 kt/year, by this widening its basis of polyurethane raw material production. By having commissioned the new unit in the second half of 2001, BorsodChem Rt. has become a significant isocyanate producer in Europe. The implemented MDI and TDI production is a significant leap forward in the life of the company, since as of 2002 isocyanates prevailed over other products of the company both in the field of sales revenues and that of profit.
In order to accomplish the production process the whole technological line - nitration of toluene to dinitrotoluene, producing toluylene diamine by hydrogenation and producing TDI, the finished product, by phosgenation - was built up at the Kazincbarcika site. In the course of project execution, the major technological facilities as well as the service buildings were planned and implemented by maximally having the regulations of industrial safety and environmental protection in sight.
The most important fields of use of the product include furniture industry as well as vehicle and paint industry. With respect to the transportation of the product, considering the maximal service of customers there are alternatives for filling tank cars, tank containers and barrels as well.
The Companyfs long-term strategic plans include the increase of the present capacity of 60 kt/year up to 100 kt/year.
2001/9
CE OIL & GAS, a Vienna-based investment company, has acquired
majority control of BorsodChem, the Hungarian PVC and isocyanates
producer. Analysts expect the takeover of 59 percent of
shares in BorsodChem
to lead to the eventual acquisition of the company by Sibur, the
petrochemical affiliate of the Russian gas giant Gazprom.
Executives at Sibur, which still retains 25 percent stake
in BorsodChem,
reiterated last week that Sibur remains interested in taking
control of the Hungarian chemicals producer.
@
25 October 2000 EBRD statement on BorsodChem The European Bank for Reconstruction and Development (EBRD) owns 8.61 per cent of BorsodChem. The EBRD has supported the companyfs restructuring and expansion since its privatisation in March 1996. During this period, BorsodChem has grown into a leading central European chemical company and generated significant value for all shareholders in the process.
Milford Holdings, which recently became the companyfs largest shareholder, has proposed a number of agenda items for discussion and decision at the upcoming Extraordinary General Meeting of the Shareholders of BorsodChem (EGM), called for 24 November. Milford Holdingsf failure to clarify its beneficial owners and its intentions makes it difficult for BorsodChem shareholders to make informed decisions on several of the proposed agenda items.
The EBRD will closely follow the situation over the coming days and weeks. The Bank will vote its shares at the EGM in a way that best protects the interests of the companyfs shareholders as a whole.
The EBRD is particularly concerned that the rights of minority investors be fully protected. The EBRD is confident that the Hungarian regulatory authorities will remain vigilant and ensure there are no violations of the minority shareholdersf statutory rights.
[[[
An Irish company Milford Holdings Ltd., which previously held 0.66% or 80,000 shares of BorsodChemfs stock, increased its holding on September 5 to 24.82%, or 2.99 million shares. Initially there was some uncertainty over who was the backer to Milford Holdings until Gazprom was confirmed as the investor. This purchase has taken place at what is a very dynamic time in the ownership restructuring of the Central European petrochemical industry. It is also evident that local investors are wary of Russians moving into the market as Hungary strives to become a more western oriented economy.
Last fall, the banker showed up as a representative of the Dublin, Ireland-registered Milford Holdings. According to a document obtained from the Dublin Company Registration Office, Milford's nominal owners are Limassol, Cyprus-registered companies Greepeak Consulting and Outbreak Consulting.
Despite its share capital being registered as 2 Irish pounds, Milford declared a pre-tax profit of 33 mm Irish pounds and a bank balance of $ 184 mm in 1999, according to the Irish Independent. When it became known in Budapest that this unknown company had secretly bought up a quarter of BorsodChem, Hungary's second-largest chemical concern, Rakhimkulov admitted at the end of October 2000 that Milford is "in Gazprom's sphere of the influence." Neither Gazprom or any of its subsidiaries or employees would respond to questions for this article.American funds Templeton and Croesus might have sold their stakes to Milford Holdings (the holding company of Russian owners Gazprom).
Sibur gained its shares in BorsodChem by taking over the shareholding of Milford Holdings
Sibur's British subsidiary took up its option to buy a 25-percent stake in the plant from Hungary's CIB Bank. In the future it is very likely that Sibur's stake in the plant's share capital will increase through the purchase of shares from other Borsodchem shareholders.
Milford Holdings repurchased its 24.8 per cent stake in the Hungarian group from Sibur, a subsidiary of the Russian gas giant, Gazprom. Milford Holdings purchased the stake nearly two years ago and then sold it to Sibur in June 2001, using CIB Bank as an intermediary.
Sibur has sold its 24.8% shareholding in BorsodChem to Gazprom (Moscow) subsidiary Milford Holdings (Dublin).
16/11/2000
Hungary?s second largest petrochemicals group, BorsodChem, has written to Milford Holding Ltd asking it to make a clear bid for remaining shares in the company.@
@
Borsodchem vs Gazprom
25 September 2000 00:00 [Source: ICB]
Hungary's chemicals group Borsodchem has clashed with Russian oil and petrochemicals group Gazprom over control of Hungarian chemical giant TVK.
Gazprom, which already holds a 24.7% stake in Borsodchem through Irish holding company Milford Holdings has expressed concerns over Borsodchem's alleged plan to sell off its newly acquired 30% stake in TVK to MOL.
In a statement, Milford Holding said: 'Borsodchem's largest shareholder (Milford) is deeply worried that, according to available information, the management of the company (Borsodchem) is now planning a divestment of significant assets or negative restructuring of assets'.
Milford Holdings added that Borsodchem is going ahead with negotiations over this stake despite receiving written warnings from them not to sell Borsodchem's present assets.
To this end, Milford has also called for an extraordinary general meeting at Borsodchem 'to ensure a management able to identify with (Milford's) strategic investment aims'.
The announcement by Milford Holdings follows the unprecedented move by the Budapest stock exchange last week to suspend trading in shares of MOL, Borsodchem and TVK at the request of the three companies.
As ECN went to press, Borsodchem had declined to comment on the situation with its shares. According to one analyst, the decision to sell Borsodchem's TVK stake to MOL is favoured by the Hungarian government, in order to keep the shares out of Gazprom's reach.
Earlier this month, Borsodchem, in conjunction with MOL, another major TVK shareholder, conducted a purge on TVK's management (ECN 4 September 2000).
'Borsodchem purchased the TVK stake to secure its ethylene supply, but if MOL can guarantee an ethylene supply through TVK, Borsodchem does not need to keep the stake,' commented Zsuzsanna Kun of Austrian livestock bank CAIB in Budapest.
MOL holds a 20.2% stake in TVK and is its main feedstock supplier, while Borsodchem has a 30% stake in TVK and supplies ethylene to the company.
2000/6
BORSODCHEM'S acquisition of a 28.5 percent stake in Tiszai Vegyi Kombinat (TVK), both leading petrochemical producers in Hungary, could trigger a reorganization of that country's petrochemical industry. The $130 million purchase will link BorsodChem's participation in TVK with that of MOL, the Hungarian oil and gas company which bought a 19.6 percent stake in TVK last year.
TVK
The Olefin-1 Plant started up in 1975 and the Olefin-2 Plant came on line in 2004, both utilising Linde technology. Calculated for ethylene, the annual total capacity of the two plants is 620 kt/year.
Low-density polyethylene (LDPE) product group
TVK laid the foundations of petrochemical production in Y1970, when its polyethylene plant of ICI technology (LDPE-1) came on line. The capacity to produce low-density polyethylene as well as the product range expanded substantially with a new plant (LDPE-2) of BASF technology installed in 1991. The joint annual capacity of the two plants is 120 kt/year. .
High-density polyethylene (HDPE) product group
Utilising PHILLIPS process technology to produce high-density polyethylene, the HDPE Plant of 200 kt capacity was constructed in Y1986. A new HDPE Plant utilising Mitsui process technology came on line in Y2004. The joint annual capacity of the two plants is 400 kt/year.
Polypropylene (PP) product group
In addition to the PP Plant that came on line in Y1989 with HIMONT (now Basell) technology, a cutting edge polypropylene plant utilising the MONTELL (now Basell) process has been available since spring of Y2000 to produce TVK's polypropylene products under the brand name TIPPLEN, including homogeneous polymers, heterogeneous phase copolymers, as well as random copolymers.
As part of the Petrochemical Development Project implemented between Y2002-2005, we expanded our capacity in three areas. The ethylene production capacity almost doubled (reaching 620 kt) with the installation of the new olefin plant; the high-density polyethylene capacity doubled (reaching 400 kt), and our polypropylene capacity also increased following a plant upgrade.
February 22, 2008
TVK's Olefin-1 plant, in operation since 1975, has capacity of 370,000 mt/yr, for a total ethylene output capacity of 660,000 mt/yr.
HDPE-2 now operates at 220,000 mt/yr, up from 200,000 mt/yr. The HDPE-1 plant has capacity of 200,000 mt/yr, bringing the total for HDPE to 420,000 mt/yr.
There is no change to TVK's LDPE capacity of 97,000 mt/yr, consisting of an ICI plant built in 1970 (32,000 mt/yr) and a larger plant built by BASF in 1991 (65,000 mt/yr). Polypropylene capacity is also unchanged at 280,000 mt/yr, consisting of two Himont plants built in 1989 (100,000 mt/yr) and 1999 (180,000 mt/yr). Total polymer capacity at TVK is now 797,000 mt/yr.
@
[[[
02 October 2000 00:00 [Source: ICB]
Milford Holdings, acting on behalf of Russian energy group Gazprom, has said that it is taking legal action to prohibit the sale of stakes in TVK by Hungarian peer Borsodchem to MOL.
The sale of TVK stocks is 'unreasonable, inefficient and illegal as the deal will result in decreasing the value of Borsodchem's shares,' said Milford, which holds a 24.7% stake in Borsodchem. Milford also threatened to unseat several Borsodchem directors at an extraordinary general meeting.
Milford's threatened legal action is in response to Borsodchem's decision to sell a 7% stake in TVK to Hungarian oil and gas group MOL. This move would bring MOL's ownership in TVK to 29.8%, making it TVK's largest shareholder. MOL declined to reveal the price it paid, but reports suggest MOL paid Florint 6000 ($20.1)/share.
nK[ΞϋεθMOL
2007/2/28@Hungarian oil and gas firm MOL MOLB.BU said it doubled its stake in chemicals maker TVK TVKD.BU to 94.86 percent for what analysts said was a good price for MOL.
The Moscow Times » Issue 2053 » Business
Gazprom to Fight Sale
27 September 2000A company acting for Gazprom in Hungary said Tuesday it would take legal action to annul the sale of stakes in chemicals firm TVK by sector peer BorsodChem. The sale was a blow to Gazpromfs expansion plans. Irish-based Milford Holdings, which recently became BorsodChemfs largest owner on behalf of Gazprom by acquiring an almost 25 percent stake, announced the legal move in a statement. It also said it would initiate the dismissal of certain members of BorsodChemfs board of directors at an extraordinary shareholders meeting. BorsodChem announced over the weekend that it sold a 7 percent stake in TVK to oil group MOL, giving it 29.8 percent of TVK when combined with earlier stakes and allowing it to become TVKfs largest shareholder.
Meanwhile in Hungary, showing hostile takeovers are not a sole American custom, MOL and BorsodChem continue to fend off takeover moves from Russia's natural gas giant, Gazprom. However, in a series of confusing moves, BorsodChem wants to purchase feedstocks?including methanol, stirol monomers, and dichlorethane?from Russia-based SIBUR, a petrochemical company controlled by Gazprom.
SIBUR officials said the aligned companies could seize an opportunity to supply raw materials and develop cooperation in the Russian and European markets. However, SIBUR has a six-month option to buy a 24.7% stake in BorsodChem from Irish-based Milford Holdings, through which Gazprom bought a stake earlier this year.
After all this, BorsodChem then inked a tentative agreement with Russia's LUKoil, Gazprom's main competitor, for the supply of vinyl chloride monomer and ethylene. This makes sense in that LUKoil recently won the tender for Ukrainian ethylene producer Oriana and is now looking for an outlet for its products.
@@@«
2001/6
KAZINCBARCIKA, HUNGARY-Dublin-registered Milford Holdings Ltd, a holding company of Russian energy group Gazprom, has dropped all legal action against BorsodChem Rt., the Hungarian chemical group announced 21 May. The move seems to mark the end of a turbulent chapter in Borsodchem's recent history.
@
2003/4/17
VCP-group now owns 88.97 % of BorsodChem
VCP Industrie Beteiligungen AG (former corporate name: AURORA Holding AG; hereinafter: hVCP Industrieh) entered on March 12, 2003 into a share purchase agreement with Milford Holdings Limited, based on which VCP Industrie has acquired a 29.74% direct interest in BorsodChem Rt. as of April 16, 2003. VCP Capital Partners Unternehmensberatungs AG (hereinafter hVCPh) is the holder of 95% of the shares in VCP Industrie and of 100% of the shares in CEE Oil & Gas Beteiligung und Verwaltung GmbH (gCEEh). CEE is the sole owner of the shares in CE Oil & Gas Beteiligung und Verwaltung AG (gCEOGh). As a consequence, VCP - through its affiliates: VCP Industrie, CEOG and CEE - has an aggregate influence of 88.97% in BorsodChem.@
2001/9 Business
Hungary
IN THE INTEREST OF SMALL INVESTORS
http://www.amcham.hu/BusinessHungary/15-08/articles/15-08_35.asp
TAKEOVER TRAUMA
On June 26,2001, the Hungarian Parliament approved an
"omnibus legislation" (salatatorveny), which amends
more than a dozen laws, including Hungary's Securities Act. The
provisions that amend the Securities Act have been coined as Lex
BorsodChem because an emergency overhaul of the takeover rules
was triggered by the efforts of Gazprom/Sibur to take control
over Hungarian chemical manufacturer, BorsodChem.
The BorsodChem saga is long and entangled. In the second half of
2000, Gazprom's affiliates and "friends" amassed a
controlling stake in BorsodChem. Rumors spread that CE Oil &
Gas ? an Austrian financial investor formed for the sole purpose
of buying up the shares of BorsodChem and TVK ? was a close
friend. The Russian and Austrian raiders took advantage of a
loophole in Hungary's then-effective takeover regulations. These
regulations failed to provide clear rules to situations where two
or more shareholder groups are acting in concert to acquire more
than 33% voting interest in a Hungarian company ? the threshold
which triggers the obligation to make a public offer to all of
the shareholders of the target company.
The regulator and other law enforcement authorities were unable
or unwilling to plug the loophole by a creative construction of
the law, which would have been in line with the legislative
intent. As a result, it was left for the legislature to close the
loophole. Lawmaking, however, is a time consuming and often times
acrimonious process. In any event, the new law, together with Lex
BorsodChem, was first passed by Parliament in May and then, as a
result of a "procedural" error in reconciling the text
as voted on with the text to be published, was passed again on
June 26, 2001. The key provisions of Lex BorsodChem now include
an obligation to disclose any voting interest of 5%, and rules
which are supposed to apply to the disclosure and public offer
requirements when shareholders are "acting in concert."
In some ways, Lex BorsodChem comes too late. The Budapest Stock
Exchange appears to be in a deep coma. Furthermore, Gazprom/Sibur
and their Austrian friends have already won the war on the
unregulated battlefield. From their solid platform, CE Oil &
Gas launched a public offer under the "old law," for
the outstanding shares of BorsodChem, at a price of HUF 5,300 per
share. This price represents a "generous" 2.9% premium
over the minimum price prescribed by current law. The minimum
price/share under Lex BorsodChem would be significantly higher.
However, Lex BorsodChem may never be applied to the takeover of
BorsodChem. Even when it is applied to one of the raiders,
compliance with the new rules has a jovial twist. Specifically,
when CE Oil & Gas made an effort to comply in good faith with
the disclosure rule of Lex BorsodChem, it only disclosed its
direct and indirect parent companies, but not a single ultimate
and beneficial owner. It would be a joke if this disclosure
followed the letter and spirit of the law.
-------------
2001/8/30 gasandoil.com
Gazprom strengthens control of BorsodChem via CE Oil & Gas
buyout
Russian energy group Gazprom appeared to have strengthened its
control of Hungary's second largest chemicals firm BorsodChem via
a buyout by Austria's CE Oil & Gas. Gazprom does not directly
hold any stake in BorsodChem, but CE Oil & Gas and Russian
petrochemicals firm Sibur, which has 24.8 % of BorsodChem, are
seen as Gazprom allies.
Gazprom owns 38 % of Sibur. CE Oil & Gas, which offered 5,300
forints per share in June for the 83.9 % of BorsodChem it did not
already control, said it had added a further 43.17 % of the
Hungarian company, taking its total holding to 59.27 %.
But CE Oil & Gas, owned by an Austrian venture capital firm
which has denied it is acting for the Russian monopoly, must
first convince Hungary's competition regulator which, according
to daily Napi Gazdasag, wants to take a closer look at CE Oil's
background and strategic aims.
"Our offer was designed to put an end to all
uncertainties... and ensure the long-term future of
BorsodChem," said Georg Stahl, who heads both CE Oil &
Gas and BorsodChem. "We are sure BorsodChem can now look
forward to an even more prosperous and secure long-term
future," BorsodChem CEO Laszlo Kovacs added.
The European Bank for Reconstruction and Development (EBRD) said
it offered its 8.61 % BorsodChem stake to CE Oil & Gas, while
other sources said Sibur had rejected the Austrian offer, which
valued BorsodChem at a total of 64.6 bn forints.
BorsodChem itself had previously said it offered its own tiny
stake of 19,746 shares to CE Oil & Gas. In a separate move,
Hungary's financial markets watchdog (PSZAF) said it had ended a
near year-long investigation to see whether some BorsodChem
shareholders had infringed Hungarian takeover rules which demand
a buyout offer once any single stake exceeds 33 %.
PSZAF called for BorsodChem's major shareholders to be clearly
identified after widespread speculation that Gazprom had raised
its stake above 33 % via proxies. However, analysts said the
situation was still not clear even after the successful CE Oil
& Gas offer. Many still wanted to know what links, if any,
there are between CE Oil and Sibur.
"We still don't know who is behind (CE Oil) and we still
don't know for sure what the relationship is with Sibur,"
said Tamas Pletser, analyst at Erste Bank Investment. "It
does seem like there's some cooperation between them."
Pletser expected CE Oil & Gas to sell its BorsodChem stake in
three or four years, probably to a strategic investor. "The
most likely scenario is that it will be Gazprom via Sibur,"
he said.
-------------
2006 N09
Permira Funds file
public purchase offer documents for BorsodChem shares for
regulatory approval
First Chemical Holding Vagyonkezel? Kft. (FCH) yesterday
submitted to the Hungarian Financial Supervisory Authority (HFSA)
all relevant documents for approval of a public purchase offer
for all registered ordinary shares of BorsodChem Nyrt. (BC), at a
price of HUF 3,000 per share. FCH has been appointed as bidder by
members of the Kikkolux Group, which is controlled by certain
Permira Funds, and the VCP group.
The offer price of HUF 3,000 represents a 26% premium over the
three-month average stock exchange price before Kikkolux
concluded option agreements with VCP and Firthlion, the two major
shareholders of BC, for the shares which, disregarding the
employee shares, represent an aggregate direct and indirect
control of 52.05% of all voting shares of BC.
The envisaged public purchase offer for all BC shares, assuming a
takeover share price of HUF 3,000 per share, values BCfs equity at approximately EUR 850
million.
The public purchase offer will be launched once formal approval
has been granted by HFSA and will be conditional upon FCH
acquiring influence exceeding 50% in BC and EU Competition
Clearance.
---
Successful public purchase offer for BorsodChem
First Chemical Holding Vagyonkezel? Kft. (FCH), the bidder
appointed by members of the lead investor Kikkolux Group
(controlled by Permira Funds), and its partner Vienna Capital
Partners (VCP) Group, has successfully completed its public
purchase offer for all shares of BorsodChem Nyrt. (BorsodChem).
With the successful completion of the purchase offer, Kikkolux
Group and VCP Group have acquired a joint influence of 92.9% over
BorsodChem. This control level already reflects the decrease of
the registered capital of the company which was approved by the
extraordinary general meeting of BorsodChem on October 13, 2006
and which will be registered by the Company Court early 2007.
Permira and VCP are pleased with the high acceptance of the
purchase offer. "This is a clear confirmation that the
acquisition process is off to a good start. Based on the number
of shares that could be purchased by way of the purchase offer we
have obtained nearly 97% of such sharesh. said Thomas Jetter, Partner and
Head of Chemicals Sector at Permira; "The basis for a long
term investment into BorsodChem has been established. We look
forward to working together with Management and fully support the
plan of the development of BorsodChem from a successful regional
player into a truly European company with a considerable
investment programme".
Quelle: VG Online (online site of business daily Vilaggazdasag);
20061219
-------------
----------------------------
VCP to sell large share in BorsodChem for cash
13 September 2004 00:01 [Source: ICB]
BorsodChemfs majority shareholder, Vienna
Capital Partners (VCP), announced plans to put much of its stake
on the market in the final quarter of 2004 through a private
placing of global depository receipts to domestic Hungarian and
international institutions. HSBC Bank is coordinating the
process.
Analysts suggested VCP could sell about 41% of the shares in
BorsodChem, but retain the majority holding by a single vote.
Sandor Nemeth, a VCP spokesman, said it is unlikely that VCP
would consider an all-share transaction.
Instead, it will be looking to sell its stake for cash. This may
be done in several stages, said Tamas Pletser, analyst with
Hungaryfs Erste Bank. A multi-stage
process would help increase the sharefs liquidity. Currently only about
8% is floated.
In a connected transaction, BorsodChem also plans to dispose of
its 15.4% stake in TVK, the upstream Hungarian petrochemicals
company, to one of the Vienna Capital Partnersf
subsidiary
companies, CE Oil & Gas Beteiligung und Verwaltung (CEOG).
This will happen only if VCP successfully places a portion of its
stake by 30 November this year.
VCP started building its stake in BorsodChem in 2000 with the
purchase of 16% of the company. At the time, BorsodChem was
concerned that VCP was acting as a front for Gazprom, which had
been building a stake in the Hungarian firm.
VCP had increased its stake to 88% earlier this year when it
added stakes purchased through Aurora Holdings, an Irish
domiciled company and a subsidiary of VCP. In June this year,
Lazlo Kovacs, BorsodChemfs chief executive officer, sold
his personal holding to VCP for Forint 225m (?0.9m/$1m) after
other managers had sold their shares to VCP in May.
This sequence of purchases took VCPfs holdings in Borsod-Chem to just
under 92%. These are held by CEOG ? with 59.38% ? and VCP
Industrie Betiligungen, another VCP subsidiary, with 31.79%.
At one time this could have been seen as a chance for one of the
Russian oil players to gain a stake in the firm ? a prospect that
has excited Hungarian institutions for more than four years. Now
that looks less likely, according to local analysts.
The historical rationale behind such a move evaporated when TVK
was purchased by a consortium of Hungarian companies.
Historically, both Gazprom and Sibur are thought to have
considered BorsodChem a target.
It sits at the end of a pipeline from Oreana in the Ukraine, via
TVK. When TVK was in play several years ago, there was a
rationale for sitting at both ends of the pipeline in terms of
product integration
Hungarian PVC business
for sale
Hungarian chemicals company BorsodChem is to sell its PVC
business
and is looking for a buyer through HSBC. BorsodChem has seen a 20
- 25 per cent drop in orders and chief executive Wolfgang Buchele
has said that it can maintain profitability in 2009 but not at
sufficient profit level for long-term operations. It has frozen
most of its fixed-capital investments and wants to renegotiate
its loans.