Recticel jumps on divestment of engineered foams activities

Recticel SA

14/06/2023 09:18

** Shares in Recticel  RECT.BR  jump more than 7% after the
Belgian plastics group said it had completed the divestment of
its engineered foams activities
    ** The shares are on track for their best day since February
2022
    ** The group, which becomes a pure insulation player, said
the sale to U.S.-based Carpenter had been approved for a revised
enterprise value of 454 million euros ($489.8 million)
    ** ING notes this represents a discount of around 30% to the
previously agreed value, but adds the scope of the transaction
has changed materially as Recticel will keep U.S. Soundcoat
Company and a 33% stake in Italian group Orsa Foam
    ** "We expect a material positive share price reaction this
morning, as we believe the market has discarded the idea of
Recticel managing to divest this activity," the broker says
    ** The long-awaited Carpenter-Recticel operation was
announced in 2021
    ** Although ING says the divestment doesn't look really
attractive from a valuation perspective, the broker notes it
will allow Recticel to invest in inorganic expansion in
Insulated Panels

($1 = 0.9269 euros)

 (Reporting by Diana Mandiá)
 ((diana.mandiaalvarez@thomsonreuters.com))