Recticel plans to sell its crown jewel, its flexible foam division. She already has a binding offer in her pocket. This puts the Austrians in a big chop.
The industry group Recticel’s move is somewhat unprecedented: to sell your core business to make yourself unattractive to your attacker. Recticel does this with its flexible foam core, which Greiner was all about when it secretly bought himself at Recticel last year.
Recktisel announced today that this division is going out. She already has a binding offer from American Carpenter from Virginia. The Americans are offering 656 million euros (no debt and no cash), which amounts to 11.65 euros per share (diluted) of Rickettsil. The transaction must be approved by Recticel’s shareholders, including uninvited shareholder Greiner.
Greiner owns 27% of Recticel. Greener currently has a profile Try on Recticel At €13.50 per share. But Recticel and its board of directors consider that to be a significant understatement.
By selling its flexible foam division, Recticel now makes itself unattractive to Greiner. The decision to sell the flexible foam partition can be made by an ordinary majority. This means that if enough shareholders show up and vote for the sale, Greiner will lose. Since Greiner has 27 percent, it is sufficient in principle for a little more than 27 percent of shareholders to show up, provided they all support the sale.
Recticel itself says that the isolation department will become the new primary activity in which it sees its future. Initially, it was also expected to be launched in time as part of the expansion of the flexible foam division.
The “Bedding” section of the Recticel is also currently on display. Rickettsil’s move is far-reaching and represents a major strategic turning point. But it might be the only way to pTo get rid of Greiner’s eyes. However, this step is not without risks. The Recticel, on the other hand, is designed with no elastic foam and no mattress for ambitious groups like the Irish Kingspan and OR Mohawk. Kingspan once featured in the insulation department. Both are competitors to Recticel in insulation. The question is whether competition authorities will allow such aggregation.
Now is the time to see what Greiner does in the short term. Will Greiner increase his offer to buy Recticail? This will enable Greiner to acquire additional shares and prevent the sale of its flexible foam division at the crucial shareholder meeting in early December. But in order to be able to vote on those shares, Greiner would have to shorten the bidding period considerably and adjust its prospectus. It remains to be seen if all this can be done in time.
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