Solvay launches friendly cash offer Rhodia

Solvay launches friendly cash offer for Rhodia

12:52 PM, 17th June 2011
Solvay launches friendly cash offer for Rhodia
Christian Jourquin, CEO, Solvay.

  • € 31.60 per share represents a 50 per cent premium over the last share price prior to the announcement of the offer
  • Offer of € 52.30 per OCEANE convertible bond
  • Indicative calendar from June 15th to July 20th, 2011
  • Enterprise value of Rhodia of € 6.6 billion and REBITDA multiple of 7.3x1
  • Rhodia’s equity valued at € 3.4 billion

BRUSSELS, BELGIUM: Solvay and Rhodia announced the start of Solvay’s friendly cash offer for Rhodia shares at € 31.60 per Rhodia share ex dividend (representing a 50 per cent premium over the closing Rhodia share price on April 1st), and € 52.30 for the OCEANE convertible bonds. This offer, which covers the entire Rhodia equity capital and voting rights, values Rhodia’s market capitalization at € 3.4 billion with an enterprise value of € 6.6 billion and a REBITDA multiple of 7.3x. Rhodia’s acquisition should increase Solvay’s earnings per share as from 2011.

The launch of the offer by the French financial markets authorities follows approvals subject to applicable regulations. With sales of € 12 billion the new group will become a large global chemical company. The future group will capitalize on its excellent market positions with 90 per cent of combined sales realized in businesses where it is one of the top 3 worldwide market leaders.

“The track record of both companies to date bears witness to the strong growth potential. These will enhance the development potential for the new group, which will be larger than those of Solvay and Rhodia on a standalone basis. This transaction will give the two companies the resources they require to pursue their track record of innovation and as such to meet their future industrial and technological challenges,” said Christian Jourquin, CEO, Solvay.

The new Group will have a broader businesses portfolio, less exposed to economic cycles, geographically balanced and focused on emerging markets, which already account for 40 per cent of the new group’s sales.

“The launch of the Solvay offer gives Rhodia shareholders the opportunity to properly value their investment, while also contributing to the creation of a major chemical group. I am convinced that thanks to Rhodia shareholders’ confidence and support, we will be able to write a new page in the history of our two companies,” commented Jean-Pierre Clamadieu, Chairman and CEO, Rhodia.

(C) WOC News




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