By Patrick Raleigh UT On-line news editor
Budapest- BorsodChem Rt. is raising HUF3000 million ($14 million) through a private shares offering to help it fund acquisitions in central Europe early in the New Year. The move will increase group equity to HUF17 000 million, the Hungarian petrochemicals group said 16 Dec.
The new shares are being purchased by existing BorsodChem shareholders VCP Industrie Beteiligungen AG and sister company CE Oil & Gas Beteiligung und Verwaltung AG. The deal will leave VCP with a 91.17-percent stake in BorsodChem, the group stated.
“We hope that the company’s excellent market position, stock exchange presence and strong shareholder background will all contribute to BorsodChem’s victory in forthcoming privatisation tenders of the neighbouring countries,” said László Kovács, BorsodChem’s CEO, in a press statement.
“As majority owners it is our key responsibility to provide effective and timely support to the strategic goals advocated by the management,” added Heinrich Pecina, VCP’s senior partner.”The capital increase … will help [BorsodChem] to spearhead the industry consolidation expected to take place in central easter Europe … as early as the first months of next year,” Pecina concluded.”