Luxembourg-based Brachem Sells Brenntag Stake

Luxembourg-based investment firm Brachem Acquisition said on Friday it had raised 577.5 million euros ($769 million) from the sale of shares in German chemicals distributor Brenntag, Reuters reported Friday. Brachem, which holds shares in Brenntag for private equity groups BC Partners and Bain Capital as well as Goldman Sachs, said the shares were placed at 82.50 euros, a 4.9 percent discount to Thursday’s closing price of 86.76 euros.

(Reuters) Luxembourg-based investment firm Brachem Acquisition said on Friday it had raised 577.5 million euros ($769 million)from the sale of shares in German chemicals distributor Brenntag.

While Europe’s market for new listings remains quiet, several days of rallying markets this month have given bankers a chance to run accelerated deals for clients, either raising new money or allowing major shareholders to cut their stakes.

The size of the offering, launched on Thursday evening, was increased to 7 million shares, from 5 million due to investor interest — making it equivalent to 13.6 percent of the company’s share capital.

Brachem, which holds shares in Brenntag for private equity groups BC Partners and Bain Capital as well as Goldman Sachs, said the shares were placed at 82.50 euros, a 4.9 percent discount to Thursday’s closing price of 86.76 euros.

Brachem said it had cur its stake in Brenntag to 13.7 percent through the sale.

BC Partners, the largest shareholder of the three, last sold down its stake in Brenntag in January when it agreed to a 90-day lock-up on the further sale of any shares. However, a source close to the deal said this had been waived due to high demand for the stock.

The offering was several times oversubscribed, a banker said.

Brenntag shares, which were trading at 84.00 euros by 0930 GMT, have risen around two thirds in value since the company floated in March 2010 at 50 euros. They are up 16 percent this year.

Goldman Sachs acted as sole bookrunner on the offering. ($1 = 0.7511 euro) ($1 = 0.7511 euros) (Reporting by Alexander Huebner and Kylie MacLellan)

 

 

Related Posts

Leave a Reply

PEHUB Community

Join the 12502 members of peHUB to make connections, share your opinion, and follow your favorite authors.

Join the Community

Create your free online surveys with SurveyMonkey , the world's leading questionnaire tool.

Look Who’s Tweeting

Psst! Got any hot tips?

  • This field is for validation purposes and should be left unchanged.

PE HUB News Briefs

RSS Feed Widget

Marketplace

VCJ Headlines (subscribers only)

RSS Feed Widget

Buyouts Headlines (subscribers only)

RSS Feed Widget

Reuters VC and PE feed

RSS Feed Widget