The FINANCIAL — Euronext Brussels on December 22 congratulated Solvay (SOLB), a worldwide chemical and advanced materials company, on its successful right issue, which was launched to complete the financing of the acquisition of Cytec.
This transaction is Solvay’s first capital increase since its listing on the Stock Exchange in 1967. It is also the largest rights issue on Euronext Brussels since 2008, the largest on the Euronext markets in 2015, according to Euronext.
Founded in 1863, Solvay assists its customers in innovating, developing and delivering high-value, sustainable products and solutions which consume less energy and reduce CO2 emissions, optimize the use of resources and improve the quality of life. Solvay serves diversified global end markets, including automotive and aerospace, consumer goods and healthcare, energy and environment, electricity and electronics, building and construction as well as industrial applications. Solvay is headquartered in Brussels with about 30,000 employees spread across 53 countries. It generated pro forma net sales of close to € 12 billion in 2014, with 90% made from activities where it ranks among the world’s top three players.
21,175,283 new shares have been issued by Solvay as part of its € 1.5 billion rights issue at a subscription price of € 70.83 per share, with preference rights for existing shareholders at a ratio of one new share for four rights. The new ordinary shares, immediately assimilated with the existing 84,701,133 ordinary shares, have been listed on Euronext Brussels since 21 December 2015.
“We accomplished the acquisition and financing of Cytec in less than five months and are forging ahead with the integration of its businesses and teams into the Group’s fully operational new structure. Cytec represents a step-change in Solvay’s transformation, which will reinforce our innovation capabilities and our strong earnings growth momentum into 2016 and beyond,” said Jean-Pierre Clamadieu, CEO of Solvay.
Alain Baetens, Head of Listings, Euronext Brussels, added: “Solvay’s very substantial capital increase illustrates once again the role that capital markets play in financing businesses’ growth and ambitions. We are particularly proud to support this international champion with Belgian roots, whose history goes back over 150 years, in a move that opens a new stage in its business development. The success of this transaction underscores the strong confidence of investors in Solvay’s future.”
Credit Suisse Securities, Morgan Stanley and BNP Paribas Fortis acted as joint global coordinators and joint bookrunners.
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