Private equity firm PAI is stepping up preparations to sell Swedish chemicals firm Perstorp to take advantage of still-buoyant corporate valuations and has completed its line-up of advisers, several people familiar with the transaction said.
The buyout group has picked Morgan Stanley, Nordea and Carnegie to lead a potential stock market listing of Perstorp, people familiar with the matter said, while it has hired HSBC to sound out potential industrial and private equity buyers.
Reuters reported in July that PAI was mulling a listing of Perstorp which could take place later this year and value it at more than 1.5 billion euros ($1.69 billion) including debt.
Perstorp makes feed additives, biodiesel and chemical products for plastics and for coatings, including films for shatterproof car windshields and scratch-resistant coatings for cellphones.
One of the sources said China’s Sinochem and some private equity firms had made tentative bids. Another source said the sales process had been put on hold since PAI had concluded a listing would mean a higher valuation than a straight sale.
PAI and Perstorp declined to comment. The banks either declined to comment or did not immediately respond to a request for comment. Sinochem could not immediately be reached for comment. The sources declined to be identified because the details of the plans are not public.
Perstorp said last week it was looking at strategic options together with its owners, including a listing, as it posted a 45 percent rise in second-quarter core earnings, boosted by a new plant and an acquisition, its eighth straight quarter of profit growth.
In the year to June 30, earnings before interest, tax, depreciation and amortisation were 1.67 billion Swedish crowns ($198 million), excluding non-recurring items.
($1 = 0.8862 euros) ($1 = 8.4545 Swedish crowns)
(Reporting by Sven Nordenstam and Arno Schuetze. Editing by Jane Merriman)