Nuplex lifts guidance on improved returns from EMEA and Americas
Nuplex says the improved guidance assumes a continuation of foreign exchange rates.
Nuplex Industries [NZX: NPX], 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's independent directors are backing a $1.05 billion takeover offer from Allnex Belguim SA, which will create one of the world's largest makers of coating resins.
The company says operating earnings before interest, tax, depreciation and amortisation for the year ending June 30 will be in a range of $157-161 million, up from its previous guidance of $145-157 million.
Nuplex says 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 will be reported as discontinued operations. Excluding discontinued operations, operating ebitda will be $154-158 million.
Nuplex and US-based Allnex have signed a scheme implementation agreement, which values Nuplex at $5.55 a share, including a 12c per share dividend payment in February. That's a 44% premium to where the shares were trading before the February announcement.
The shares last traded at $5.29 and have soared 52% 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,
(BusinessDesk)
Jonathan Underhill
Thu, 12 May 2016
Thu, 12 May 2016
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Nuplex lifts guidance on improved returns from EMEA and Americas
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