08 February 2010 17:06 [Source: ICIS news]
PRAGUE (ICIS news)--UK-based private equity fund Permira Advisers and China's Wanhua Industrial Group have agreed to underwrite a major capital injection into BorsodChem, a source at the Hungarian isocyanates producer said on Monday.
“It's not signed and sealed yet, but the negotiating has been concluded,” the source said. “Something like €140m ($192m) should be put into the company to at least replace or, hopefully, add to the €100m we've applied for in state assistance related to the economic downturn.”
Until late last year Wanhua and Permira, which, along with junior partner Vienna Capital Partners, is the majority owner of BorsodChem, were at odds over who should control BorsodChem under a new ownership and financial structure.
However, the two parties eventually settled on a deal that would allow Permira to retain ownership of BorsodChem in the medium term. The agreement also gives Wanhua subsidiary, methyl di-p-phenylene (MDI) producer Yantai Wanhua, a minority stake in BorsodChem, which it can contractually bid to turn into a majority stake in 2013.
The current Hungarian government has cast doubt on whether BorsodChem is entitled to any financial-crisis state assistance, but the company claims it received a pledge from the previous government.
($1 = €0.73)
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