MOSCOW (MRC) -- French chemicals group Arkema has announced the launch of a share capital increase with preferential subscription rights of shareholders for an amount of around EUR350 million, whose principle had initially been announced on 19 September 2014, reported the company in its press release.
This rights issue is part of the refinancing of the projected acquisition of Bostik.
This rights issue is the second step of the refinancing of this project after the successful issuance of perpetual hybrid bonds on 23 October 2014. The balance will be financed by a forthcoming senior bond issuance.
As MRC informed previously, in 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.
Arkema is a leading European supplier of chlorochemicals and PVC. Kynar and Kynar Flex are registered trademarks of Arkema Inc.
MRC