Brief: Recticel Divests From Its Proseat Joint Venture In Two Steps

Sekisui Kasei Co

19/12/2018 06:07

Dec 19 (Reuters) - RECTICEL NV  RECT.BR :
    * DIVESTS FROM ITS PROSEAT JOINT VENTURE IN TWO STEPS
    * ENTERS INTO FINAL AGREEMENTS TO ACQUIRE THE REMAINING 49%
IN ITS
PROSEAT JOINT VENTURE FROM ITS CANADIAN PARTNER WOODBRIDGE FOAM
CORPORATION
    * AGREEMENT BETWEEN RECTICEL AND SEKISUI CONTAINS A CALL
OPTION
FOR SEKISUI PLASTICS CO., LTD. TO ACQUIRE THE REMAINING 25% IN
PROSEAT FROM RECTICEL AS FROM 2019
    * TRANSACTION WILL HAVE NO MATERIAL EFFECT ON RECTICEL’S
RESULTS
    * JOINT VENTURE BETWEEN SEKISUI (75%) AND RECTICEL (25%)
    * ENTERED INTO FINAL AGREEMENTS WHEREBY IT WILL SELL 75% IN
PROSEAT TO JAPANESE PUBLIC COMPANY SEKISUI PLASTICS
    * THE PROSEAT JOINT VENTURE HAS BEEN VALUED AT AN ENTERPRISE
VALUE
OF 8.4X THE AVERAGE (2016-2018F) EBITDA
    * BOTH TRANSACTIONS (I.E. RECTICEL/WOODBRIDGE AND
RECTICEL/SEKISUI
PLASTICS CO. LTD) ARE EXPECTED TO BE CLOSED IN THE COURSE OF Q1
2019

Source text: https://bit.ly/2UT8DOt
Further company coverage:  RECT.BR 

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