Recticel tracks worst day in over 34 yrs as Carpenter requests price review to foams biz deal

Recticel SA

28/04/2023 08:39

** Shares in Recticel  RECT.BR  slump 24.6% after the
Belgian plastics group said Carpeneter demanded price review for
the acquisition of Recticel's engineered foams business
    ** "Carpenter has recently requested a substantial price
adjustment to the purchase price, invoking the current overall
trading evolution," Olivier Chappelle, Recticel CEO said in the
company's Q1 statement, adding "Recticel is considering all its
options in this regard" 
    ** U.S.-based Carpenter had previously agreed to buy
Recticel's global engineered foams business for 656 million
euros in December 2021; the deal failed to close within the
expected timeframe
    ** KBC says "We are still optimistic on the mid to long term
growth prospects of Recticel's insulation business, the short
term earnings pressure and deal uncertainty make it hard to find
a share trigger" -- cuts rating to "hold" from "accumulate"
    ** Recticel also posts a 9.8% rise in its Q1 net sales to
122.2 million euros  ($134.47 million), against 111.2 million
euros reported a year ago
    ** Shares, touching their lowest price in a little over two
years, on track for their worst day since late Nov., 1988


($1 = 0.9088 euros)

 (Reporting by Lina Golovnya)
 ((lina.golovnya@thomsonreuters.com))