update 3-evonik unit sale, prospect of cash-flow gains boost shares - clear acrylic sheet
* Through cash flow guidance * Q4 adj EBITDA up 1 pct for the sale of methanol units at a price of 3 EUR * Market Reduction
Add CEO review, Advent financing details)
Hamburg, Ludwig, Frankfurt, March 5 (Reuters)-
The German chemical group's share price jumped to 3-
On Tuesday, after it sold the clear acrylic sheet at a bigger price, the highest this monththan-
The expected amount is 3 billion euros, easing investor concerns about its cash flow.
Later on Monday, Evonik said it had agreed to sell its acrylic plastic Division to acquire Advent group Advent for a corporate value of € 3 billion, including debt ($3. 4 billion)-
More comfortable than 2-2.
Previously estimated 5 billion euros.
"The monthly EV/EBITDA cycle of the divested commodity business is impressive at this time," reference to Gunther Zechmann, an analyst at Bernstein, previously estimated 2019 monthly income interest, taxes, depreciation and amortization (EBITDA)
Unit of 0. 279 billion euros.
Shares of the company rose 5% at 26.
Greenwich Time 1453 euros, below the best level of the day, but still the best performance in the middle of Germanycap index.
Evonik has been criticized by analysts for restricting dividends to cash
The liquidity ratio said on Tuesday that 2019 of cash flow will be significantly higher after investment in factories and equipment than the 0. 672 billion euros generated in 2018.
"The debate over our ability to pay dividends from free cash flow is over," chief executive Christian Culman said at a news conference.
The company said lower demand for working capital and pensions would boost cash flow. In its fourth-
Evonik said that this year will begin to pay part of the retiree's pension from the special pension plan assets, two years ahead of the original plan, for a better reasonthan-
Expected investment performance of the portfolio.
Advent, who already owns other chemical companies, is at 800-
0. 9 billion euros in equity and 1. 4-1.
A person familiar with the matter said 5 billion euros in debt and 0. 6 billion euros in pension liabilities.
Evonik said the adjusted EBITDA in 2019 was flat at best, but could fall by 10% due to political uncertainty and weak economic growth.
However, it added that the forecast did not take into account the $0. 625 billion purchase of peroxchem, a bleach maker, or the agreement to sell the-propylene device.
"Today's focus will be on strong 2019 free cash flow guidance. . .
Evonik's pension liabilities have improved significantly, which has been a struggle with better-than-expected earnings. . .
Laura Lopez Pineda, analyst at Baader Helvea, said.
As strong demand for paint additives and engineered plastics offset the decline in the acrylic business, the adjusted core profit rose slightly by 1% in the quarter.
Barclays and Baker McKenzie consulted on the deal to win, while Advent worked with Bank of America and Freshfields.
Barclays, Bank of America, Goldman Sachs and Deutsche Bank are financing the deal. (
Matthias eiseninverardi added that Arno Schuetze Frankfurt, edited by Riham Alkousaa Louise paradise and Kristen Donovan)