The owner of Hungarian chemical company Borsodchem has two potential investments on the horizon as it seeks to restructure the company’s debt. The first investment comes via Chinese firm Wanhua Industrial Group who is in talks with Permira to acquire a stake in Borsodchem. Wanhua has already purchased upwards of €200 million worth of mezzanine debt from two other investors.
The second investment is a loan offered by the Hungarian Development Bank to the tune of €100 million. The unexpected offer will enable Borsodchem to build a new chemical production facility. The company’s current debt stands at about €1.1 billion.
Borsodchem (www.borsodchem.hu)
Borsodchem is a Hungarian chemical company based in Kazincbarcika and employing nearly 4,000 people. Since its inception in 1991 Borsodchem has been a producer of various plastic products, specializing in isocyanates and vinyls. The company was acquired in 2006 by British investment house Permira.
Wanhua Industrial Group (www.wanhuagroup.com)
Wanhua is a group of Chinese chemical and plastic producers joined together under the Chinese state’s 1995 business reorganization plan. The group is the largest polyurethane producer in the country and employs more than 2,800 across the entire group.
Permira (www.permira.com)
London based Permira Advisers Ltd. was founded in 1985 and operates in Asia, Europe, and North America. As a private equity firm, Permia seeks opportunities for buy-outs and buy-ins, turnarounds, and private takeovers in a variety of sectors.
29/09/2009
Central & Eastern Europe, Chemicals, Exit, Hungary, Private Equity News