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Nuplex lifts guidance on performance boost

NZ NewswireNZ Newswire 11/05/2016 Jonathan Underhill

Takeover target Nuplex Industries has raised its 2016 earnings guidance on the back of a stronger performance in Europe, the Middle East, Africa and the Americas in March and April.

The company said operating earnings before interest, tax, depreciation and amortisation for the year ending June 30 would be in a range of $157m-$161m, up from its previous guidance of $145m-$157m.

Nuplex, whose independent directors are backing a $1.05 billion takeover offer from Allnex Belguim SA, said the improved guidance assumes a continuation of foreign exchange rates as they were at the end of Apri.

It includes a full 12-month contribution from the company's ANZ pulp & paper business. That business is being sold and would be reported as discontinued operations. Excluding discontinued operations, operating ebitda would be $154m-$158m.

Nuplex and US-based Allnex have signed a scheme implementation agreement, which values Nuplex at $5.55 a share, including a 12 cents per share dividend payment in February. That's a 44 per cent premium to where the shares were trading before the February 15 announcement.

The shares last traded at $5.29 and have soared 52 per cent 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, agreeing to a merger which will create one of the world's largest makers of coating resins.

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