Permira moves into Eastern Europe

Following the €10bn plus close of its fourth buyout fund last week, Permira has received acceptances from 52% of shareholders for a €815m takeover bid for Hungarian chemicals business BorsodChem.

Permira, the large buyout group, has made a HUF228.5 billion (€815 million) takeover bid for Hungarian chemicals company BorsodChem.
 
Permira, headquartered in London, offered HUF3,000 per BorsodChem share through buyout vehicle Kikkolux. At 12pm GMT today, BorsodChem’s shares were priced at HUF2,790.
 
If successful, the firm will invest from its third fund, Permira III, which raised €5.3 billion in 2003.
 
Last week, Permira held a first close on its fourth fund with just over €10 billion ($12.7 billion) of commitments.
 
Permira’s offer has been accepted Firthlion, a London-based vehicle owned by Russian businessman Medget Rahimkulov, and Austrian private equity firm Vienna Capital Partners. Together, the firms represent approximately 52 percent of BorsodChem’s shares. Permira now plans to make a public offer for the outstanding shares of BorsodChem.
 
If successful, The Royal Bank of Scotland, Lehman Brothers Europe and HSBC Bank will provide financing for the takeover.
 
Founded in 1991, BorsodChem has approximately 4,200 employees operating out of sites based in Kazincbarcika, north eastern Hungary. The company reported turnover of €697 million in 2005, a 19 percent increase on 2004 figures, and an operating profit of €65 million.