16OG Akbank 5.000% A

RNS Number:6982T
Perstorp AB
7 November 2000


  Discussions with Industri Kapital concluded 
  Perstorp completes its streamlining towards separate 
  publicly traded chemical and flooring companies


The Board of Perstorp AB has unanimously decided to conclude its discussions
with the private equity Investment company Industri Kapital, since Industri
Kapital was unable to present a new bid for the Perstorp Group as a whole.

Perstorp AB is completing its established strategy within chemicals and
flooring, with the aim of listing the Pergo flooring operations on the stock
market. After completed streamlining of the Group, the original shareholders
will have gained a stake in three listed companies - namely, Perbio Science AB,
distributed to shareholders during 1999, Pergo AB, the distribution of which has
been proposed for next year, and Perstorp AB, stated to become a specialty
chemicals company.

The strategy of continuing to focus on development in both chemicals and
flooring is supported by Perstorp's primary owners, the Custos investment
company and the entire Wendt family.

Despite the fact that Perstorp, has been subject to a public takeover offer from
Industri Kapital since April, Perstorp has made consolidated investments during
the current year in new products, plants and the acquisition of companies which
are expected to strengthen the Group's long-term development.

Perstorp a specialty chemicals group

It is the Board's objective that Perstorp AB be a globally oriented speciality
chemicals company.

Over the past ten years, Perstorp Chemicals has had an average growth of 10%,
mostly organic, and an operating margin (EBIT) of 12%. The company has
world-leading positions in several areas and with manufacturing at four
continents. In the future, operations will focus on specialized products that
permit higher margins and favorable growth, such as performance chemicals and
composite materials. To boost the company's profitability and competitiveness,
continued company acquisitions may be possible within selected niches.


Pergo an innovative flooring company

The Board's proposal to spin off and publicly list Pergo is an expression of the
board's positive attitude to the long-term prospect for flooring operations. The
spin-off proposal is supported by the investment company 
Custos AB and the entire Wendt family; that is by owners who jointly represent
more than 50% of the voting rights in Perstorp AB.

Pergo is a leading company within its area in the flooring market, with a strong
brand name, particularly in the US market. The development and launch of new
products is a key feature in Pergo's strategy for the future. During the year
substantial investments were undertaken - for example, through the introduction
of new products such as directly laminated flooring and glue-free joining
systems, which are expected to contribute to growth, with a certain time tag.

As stated in the Annual Report from April 2000, the Corporate staff functions of
the Parent Company will be integrated with the corresponding functions within
Perstorp Chemicals and a new, separate board will be formed for Pergo AB in
preparation for the listing of the Company.

Perstorp AB
Board of Directors

For further information: 
Urban Jansson, Chairman of Perstorp AB Board,  +  46 435 386 06

Akbank 5.000% A (LSE:16OG)
Historical Stock Chart
From May 2024 to Jun 2024

Akbank 5.000% A (LSE:16OG)
Historical Stock Chart
From Jun 2023 to Jun 2024