FT :Advent closes in on deal for Evonik acrylic sheets unit

Advent closes in on deal for Evonik acrylic sheets unit

Private equity group Advent International is close to signing a deal to acquire a business that makes clear acrylic sheets from the German chemicals company Evonik, according to three people with knowledge of the situation.

The deal could value the unit at as much as €3bn including debt, said one person involved in the process. Both Evonik and Advent declined to comment.

Evonik was aiming to make an announcement with its fourth-quarter financial results on Tuesday morning, according to two people, however they warned this might not happen.

Other prospective bidders that were said to be involved in the race for the methacrylates business included private equity firm SK Capital, a consortium of Triton and Rhone Capital, as well as the petrochemicals group Ineos.

Evonik is divesting what is a commodity business as it seeks to narrow its portfolio and focus on more speciality chemicals.

The methacrylates unit is expected to generate €400m in adjusted earnings before interest, tax, depreciation and amortisation for 2018 on sales of €1.9bn, with 3,700 employees across 18 sites.

Its products include the high-volume monomer methyl methacrylate and polymethyl methacrylate (PMMA), which is often used as a shatter-resistant alternative to glass in the automotive, construction and lighting industries and is sold by Evonik under the Plexiglas brand. The German group is the second-largest producer of both substances.

Analysts have forecast group adjusted ebitda of €2.6bn on sales of €15bn in 2018.

FT : Ghosn lawyer to probe Tokyo’s role in lead-up to client’s arrest

Ghosn lawyer to probe Tokyo’s role in lead-up to client’s arrest
Legal team optimistic former Nissan chairman will be released on bail soon

Carlos Ghosn’s new lawyer is examining whether the Japanese trade ministry played any role in the lead-up to the arrest of the former Nissan chairman, who was pushing for a merger between the Japanese carmaker and its French partner Renault.

The comments by Junichiro Hironaka came following reports that Nissan’s top executives had asked Japan’s Ministry of Economy, Trade and Industry for support to “put a brake” on the French government, which urged Mr Ghosn to carry out an integration as the largest shareholder in Renault.

Mr Ghosn’s plan to merge the two companies alarmed senior executives at the Japanese carmaker, who feared a de facto French takeover, according to people familiar with the discussions.

“I’m closely paying attention to Nissan’s role [in the case] and if and how Meti may be linked,” Mr Hironaka said at a news conference in Tokyo when asked whether he thought there was any political forces at play in Mr Ghosn’s case. 

On Monday, Mr Hironaka, who is known in Japanese legal circles as “the innocence contractor” and “the razor” for his record in winning difficult cases, condemned the charges against Mr Ghosn as “bizarre”.

He noted how the allegations were brought to Tokyo prosecutors by Nissan on several incidents that took place more than a decade ago. He also raised the issue of plea bargains reportedly used by Nissan executives.

They signed a plea bargain when they brought the results of the company’s internal investigation into Mr Ghosn’s financial dealings to Tokyo prosecutors last summer, according to people familiar with the investigations. 

“It is not normal for Nissan to co-operate with prosecutors on the premise that its executives will not be harmed through the use of a plea bargain,” said Mr Hironaka.

“It’s very strange that they would take the case to prosecutors now. Using common sense, this is not a case that should be subject to criminal prosecution.”

Mr Hironaka also said he plans to adopt a completely new defence strategy, which he has yet to make public, from his predecessor and expressed optimism that his client could be released on bail in the near future. Mr Ghosn was arrested in Tokyo in November.

In his third bail request submitted last week, Mr Ghosn agreed to be monitored by surveillance cameras; a court decision is expected shortly.

Mr Hironaka said he did not believe his client had done anything wrong, not only in the criminal case but also on “an ethical level”.

Mr Ghosn replaced his legal team last month amid mounting frustration on his prolonged detention since he was arrested and later charged with aggravated breach of trust and falsification of pay. 

Mr Ghosn’s case has drawn intense international scrutiny of the Japanese justice system and its practice of extending the pre-trial custody of defendants who refuse to confess. 

“I think this trial will hold highly significant historical and societal value,” said Mr Hironaka. “We need to regain the trust of the international community [by proving Mr Ghosn’s innocence].”

Mr Ghosn’s lawyers in Paris also said on Monday that they had submitted a file to the UN showing violations of his rights during his detention in Japan.

The former Nissan boss, who has also resigned as chairman of Renault, has denied all charges of misconduct. In interviews to the media from a Tokyo prison, he has said his downfall was a result of a “plot and treason” by Nissan executives opposed to his merger plan.

In a statement on Monday, Nissan said its internal investigation uncovered “substantial evidence of blatantly unethical conduct” that led to Mr Ghosn’s dismissal as chairman.

The company has said there was no link between its investigation and merger talks with Renault. 

An official at Meti said the Japanese government had never intervened in Nissan-Renault discussions or been asked by Nissan to provide support. Nissan declined to comment but a person familiar with the matter said the company had never made “a formal request for support”.

>>> US Gapping down


Gapping down
In reaction to disappointing earnings/guidance
:

  • PLCE -16.4%

Select metals/mining stocks trading lower:

  • GFI -2.3%, AU -1.8%, GOLD -1.1%, NEM -0.7%, FCX -0.5%

Other news:

  • SE -7.2% (to offer 50 mln ADSs in an underwritten public offering)
  • VALE -4.4% (announces temporary removal of executives following dam collapse)
  • LTC -2.2% (entered into separate equity distribution agreements for the sale of up to $200,000,000 in aggregate offering price of shares of the common stock)
  • NVO -1.1% (Eli Lilly (LLY) announces plan to sell a half-priced version of its Humalog insulin)

Analyst comments:

  • BBBY -3.1% (downgraded to Underweight from Equal Weight at Barclays)
  • CMTA -2.6% (downgraded to Neutral from Outperform at Robert W. Baird)
  • XLNX -0.7% (downgraded to Market Perform from Outperform at BMO Capital Markets)