China’s Wanhua gains big stake in BorsodChem

China’s Wanhua Industrial Group may soon be the owner of Hungary’s struggling PVC maker, BorsodChem.

Wanhua has become a 38% shareholder in BorsodChem following the approval of the latter firm’s financial restructuring by its senior and mezzanine lenders, according to ICIS news.

As well as the stake, Wanhua, the largest isocyantes producer in Asia, acquired a call option to purchase the remaining shares in the company within the next two years, they added.

The stake and call option were provided partly in return for a €140m ($171m) investment from Wanhua, which BorsodChem would put towards the completion of a 200,000 tonne/year toluene di-isocyanate (TDI) plant and a nitric acid facility at its main site at Kazincbarcika, Hungary, as well as using it for general corporate purposes, the companies said.

Wanhua gained a seat at the negotiating table on the future of indebted BorsodChem after anonymously buying up large chunks of its outstanding loans portfolio through an investment bank just under a year ago.

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