Thursday 21st April 2016
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Nuplex Industries, whose shareholders will vote on whether to accept a $1.05 billion takeover offer later this year, has sold its Australasian pulp and paper chemicals business for A$21 million.
The Australian unit of Delaware-based Solenis has agreed to buy the Nuplex assets, and the deal is expected to settle on June 30, Nuplex said in a statement. The specialty chemicals maker has been quitting non-core assets as part of a plan to put greater focus on its global operations, and the sale won't have any impact on the planned scheme of arrangement with US-based Allnex Belgium SA.
"Given our global operations and specialisation in resins for surface coatings, the pulp and paper business is no longer core to Nuplex’s future," chief executive Emery Severin said. "It has been a good business over the years, and the pulp and paper team are amongst the best in their industry."
Solenis already licenses technology used by the unit, which has supplied chemicals to Australian and New Zealand pulp and paper firms over the past five decades, and Nuplex's manufacturing site in Victoria and staff will be transferred with the sale.
Nuplex is in the middle of a proposed sale to Allnex, backed by its independent directors, which would see shareholders paid $5.43 per share. The deal needs 75 percent shareholder approval at a special meeting which will probably be held in August, and the price on offer also has to fall within an independent adviser's valuation range.
The shares last traded at $5.23 and have gained 10 percent this year.
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