Sharechat Logo

Nuplex shares jump 7.6% on confirmation it's in talks to sell two ANZ businesses

Wednesday 24th September 2014

Text too small?

Shares in Nuplex Industries jumped 7.6 percent, making the stock the best performer on the benchmark NZX 50 Index today, after the chemicals manufacturer confirmed it's in talks to sell two of its Australasian-based businesses to CHAMP Private Equity.

The Auckland-based company said in a statement it is "in discussions with CHAMP Private Equity in relation to the sale of two of its ANZ-based businesses being the agency and distribution business, Nuplex Specialties and the plastic additives business, Nuplex Masterbatch." The company's stock rose 23 cents to a three-month high of $3.25.

The company released the statement to the stock exchange after the Australian Financial Review speculated in its 'Street Talk' column that CHAMP is considering an offer for one of the Nuplex divisions following discussions between the parties in recent weeks.

"Discussions are continuing but no binding arrangements have been entered into at this stage," Nuplex said in today's statement. "There is no guarantee a sale will proceed. Nuplex will only proceed with a transaction if it considers that it maximises value for Nuplex shareholders."

Nuplex has warned its earnings this financial year will be hurt as increased competition crimps margins at its ANZ resins and specialty chemicals businesses, diluting an improved performance from its European and Asian units.

The stock, which has shed 11 percent so far this year, is rated an average 'buy' according to Reuters.

 

 

 

 

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar stalls amid doubts on US-China trade deal
Tourist numbers perk up in August as Aussies more than offset declining Asian demand
Peters to unions: strikes not helpful; no word on Fair Pay Agreements
Oil and gas critical to global emissions reduction effort - BP
Ebos pays A$34m for medical devices businesses
House price inflation ticks higher as sales volumes recover
Fletcher in $31 mln dispute with ministry over Greymouth hospital
NZ dollar eases as markets fret about US-China trade talks
15th October 2019 Morning Report
CTU pressures govt for Fair Pay Agreements

IRG See IRG research reports