MOSCOW (MRC) -- French chemicals group Arkema has announced a successful completion of the EU350 million share capital increase related to the proposed acquisition of Bostik, reported the company in its press release.
Thus, the share capital increase with preferential subscription rights launched by Arkema on 19 November 2014 as part of the financing of the proposed acquisition of Bostik has been successfully completed.
The gross proceeds of the issue amounts to EUR350,451,024, corresponding to the issue of 9,102,624 new shares.
Therefore, the deal would be financed by a EUR350-million share capital increase; the issuance of hybrid securities of EUR600-700 million; and a senior bond issuance for the rest, EUR500–600 million, Arkema says.
As MRC wrote befire, in late September 2014, Arkema offered to buy oil major Total's adhesives business Bostik, which makes Blu-Tack, for EUR1.74 billion (USD2.24 billion).
Total, under pressure from shareholders to improve its cash flow and raise dividends, has embarked on a major divestment program. A sale of Bostik at that price would increase its announced disposals this year to near USD20 billion - at the top of its target range of USD15-USD20 billion.
Bostik is the third-largest adhesives company and generated sales of EUR1.53 billion in 2013. Total has granted Arkema an exclusivity period to pursue the offer. The proposed transaction is subject to approval by the relevant antitrust authorities.
The acquisition would strengthen Arkema’s position in specialty chemicals and continue the development of its high-performance materials segment, which would account for 42% of total sales following the Bostik deal, Arkema says.
Bostik develops high-performance and high-value-added bonding and sealing products for the nonwoven, industrial, construction, and consumer markets. Bostik employs about 4,900 people across 48 production facilities - 18 in Europe, 10 - in North America, 8 - in Asia, 6 - in Australia and New Zealand, 2 - in Africa, and 4 - in South America.
Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC