Nuplex lifts guidance, citing improved returns from EMEA and the Americas

Thursday 12th May 2016

Nuplex Industries, whose independent directors are backing a $1.05 billion takeover offer from Allnex Belguim SA, has raised its 2016 earnings guidance, reflecting a stronger performance in the EMEA (Europe, the Middle East and Africa) and the Americas in March and April.

The company said operating earnings before interest, tax, depreciation and amortisation for the year ending June 30 would be in a range of $157 million and $161 million, up from its previous guidance of $145-to-$157 million.

Nuplex said the improved guidance assumes a continuation of foreign exchange rates as they were at the end of April and includes a full 12-month contribution from the company's ANZ pulp & paper business. That business is being sold and would be reported as discontinued operations. Excluding discontinued operations, operating ebitda would be $154 million to $158 million.

Nuplex and US-based Allnex have signed a scheme implementation agreement, which values Nuplex at $5.55 a share, including a 12 cents per share dividend payment in February. That's a 44 percent premium to where the shares were trading before the Feb. 15 announcement.

The shares last traded at $5.29 and have soared 52 percent in the past 12 months.

Allnex is controlled by Boston private equity firm Advent International, whose early advances to buy Nuplex were rejected. Those talks continued and Nuplex relented when the price became attractive, agreeing to a merger which will create one of the world’s largest makers of coating resins.

BusinessDesk.co.nz

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