Nuplex shares jump 7.6% on confirmation it's in talks to sell two ANZ businesses
By Tina Morrison
Sept. 24 (BusinessDesk) - Shares in Nuplex Industries jumped 7.6 percent, making the stock the best performer on the benchmark NZX 50 Index today, after the chemicals manufacturer confirmed it's in talks to sell two of its Australasian-based businesses to CHAMP Private Equity.
The Auckland-based company said in a statement it is "in discussions with CHAMP Private Equity in relation to the sale of two of its ANZ-based businesses being the agency and distribution business, Nuplex Specialties and the plastic additives business, Nuplex Masterbatch." The company's stock rose 23 cents to a three-month high of $3.25.
The company released the statement to the stock exchange after the Australian Financial Review speculated in its 'Street Talk' column that CHAMP is considering an offer for one of the Nuplex divisions following discussions between the parties in recent weeks.
"Discussions are continuing but no binding arrangements have been entered into at this stage," Nuplex said in today's statement. "There is no guarantee a sale will proceed. Nuplex will only proceed with a transaction if it considers that it maximises value for Nuplex shareholders."
Nuplex has warned its earnings this financial year will be hurt as increased competition crimps margins at its ANZ resins and specialty chemicals businesses, diluting an improved performance from its European and Asian units.
The stock, which has shed 11 percent so far this year, is rated an average 'buy' according to Reuters.