 "Somani Group eyes to buy stake in German specialty chemicals maker SKW")
The New Delhi based Somani Group - having business interests in steel, engineering services, oil & energy, etc - has proposed to acquire 51 percent stake in Germany’s SKW Stahl-Metallurgie Holding AG, the troubled producer of specialty chemicals that are used in steel and metallurgical industries.
“The Indian Somani Group submitted a non-binding letter-of-intent to become a shareholder in the company in the context of a financial restructuring,” said the executive board of SKW Stahl-Metallurgie Holding AG in a statement.
According to Somani Group’s proposal, a transaction should entail a significant reduction of the registered capital and a subsequent capital increase against cash with subscription rights for the shareholders. The letter-of-intent stipulates that the execution of the capital increase against cash is guaranteed by the Somani Group (‘backstop’) under the condition that the Somani Group is to hold at least 51 percent of the shares of SKW after the transaction.
From the point of view of the Somani Group, the execution of a transaction would furthermore necessitate that the key providers of debt capital to the company participate in the financial restructuring by own contributions.
The largest shareholder of the SKW Stahl-Metallurgie (Group First Holding GmbH/MCGM GmbH) has agreed to commence talks with the Somani Group for the proposed transaction.
“The negotiations are in a very early stage, and it is not secured whether a transaction with the Somani Group for the financial restructuring of the company is going to materialise. Supervisory board and executive board of the company will diligently assess the transaction as well as alternatives for a financial restructuring,” said SKW.
The core businesses of the SKW Metallurgie Group are desulphurisation and secondary metallurgy solutions for the steel industry. The group is seen as the market leader in the development and production of industrial cored wire with specialty chemicals for the production of high-grade steel. The SKW Metallurgie Group also deals in magnesium and calcium carbide that play an essential part in hot metal desulphurisation.
SKW Metallurgie customers include producers of high-grade steel to be used in the automotive industry, in shipbuilding and mechanical engineering, in construction of installations for the chemical and petrochemical industries as well as in the manufacture of household appliances.
The Somani Group is privately held company presently focussing on growth in the core sectors such as steel, oil & energy, engineering services and education. While D K Somani is the chairman of the Somani Group, Tarun Somani, the managing director, is spearheading the group’s various expansion activities.
The group offers products and services to its customers through joint ventures with world renowned companies such as Thyssenkrupp, Kuttner, Mercuria, SGL Carbon, etc. Somani Group also has diverse interests in investing into upcoming areas such as renewable energy and real estate.
“The Indian Somani Group submitted a non-binding letter-of-intent to become a shareholder in the company in the context of a financial restructuring,” said the executive board of SKW Stahl-Metallurgie Holding AG in a statement.
According to Somani Group’s proposal, a transaction should entail a significant reduction of the registered capital and a subsequent capital increase against cash with subscription rights for the shareholders. The letter-of-intent stipulates that the execution of the capital increase against cash is guaranteed by the Somani Group (‘backstop’) under the condition that the Somani Group is to hold at least 51 percent of the shares of SKW after the transaction.
From the point of view of the Somani Group, the execution of a transaction would furthermore necessitate that the key providers of debt capital to the company participate in the financial restructuring by own contributions.
The largest shareholder of the SKW Stahl-Metallurgie (Group First Holding GmbH/MCGM GmbH) has agreed to commence talks with the Somani Group for the proposed transaction.
“The negotiations are in a very early stage, and it is not secured whether a transaction with the Somani Group for the financial restructuring of the company is going to materialise. Supervisory board and executive board of the company will diligently assess the transaction as well as alternatives for a financial restructuring,” said SKW.
The core businesses of the SKW Metallurgie Group are desulphurisation and secondary metallurgy solutions for the steel industry. The group is seen as the market leader in the development and production of industrial cored wire with specialty chemicals for the production of high-grade steel. The SKW Metallurgie Group also deals in magnesium and calcium carbide that play an essential part in hot metal desulphurisation.
SKW Metallurgie customers include producers of high-grade steel to be used in the automotive industry, in shipbuilding and mechanical engineering, in construction of installations for the chemical and petrochemical industries as well as in the manufacture of household appliances.
The Somani Group is privately held company presently focussing on growth in the core sectors such as steel, oil & energy, engineering services and education. While D K Somani is the chairman of the Somani Group, Tarun Somani, the managing director, is spearheading the group’s various expansion activities.
The group offers products and services to its customers through joint ventures with world renowned companies such as Thyssenkrupp, Kuttner, Mercuria, SGL Carbon, etc. Somani Group also has diverse interests in investing into upcoming areas such as renewable energy and real estate.
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