CPH spins off paper business
CPH Chemie + Papier Holding plans to split up. The plan is to spin off the paper business, thereby creating two independent companies. The aim is to fundamentally maintain the strategy for each division in order to «get the best results for both companies.».
"We continue to believe that publication paper will still be needed in five or ten years' time. However, in order to decouple the chemicals and packaging business from the volatility of the paper business and make it more transparent and predictable for investors, the separation is the right step," explained CEO Peter Schildknecht in an interview with the news agency AWP on Wednesday.
The demerger is intended to create the listed CPH Group with its Chemistry and Packaging divisions and the over-the-counter Perlen Industrieholding. The split will be effected by distributing the paper business to shareholders in the form of a dividend in kind - each shareholder will automatically receive one share in Perlen Industrieholding for each CPH share held.
An Extraordinary General Meeting planned for June 20 will vote on the planned transaction. If approved, the demerger should be completed by the end of the second quarter. In the first phase after the separation, nothing will change in terms of personnel. The operating business and the respective brand presence will also remain unchanged.
Strategy remains
In future, Perlen Industrieholding will comprise the paper business and the real estate on the Perlen site. The clear commitment to the paper business and the "last man standing strategy" will be retained. In addition, the new, off-market Perlen Industrieholding will have a strong balance sheet and sufficient liquidity to cope with the expected market fluctuations.
"The paper business will continue to decline, but we believe that it is still possible to earn money even in a declining market," said Schildknecht. For the further development of the site, businesses that fit into the paper production value chain - for example in the energy or pulp sector - could be located on the open spaces. "It remains to be seen whether these will be external companies or acquisitions."
The news was well received on the stock market, with CPH shares rising by 3.5 percent to 88.60 Swiss francs in morning trading. According to ZKB expert Philipp Gamper, the separation from the paper business will make CPH more focused and predictable, but will also reduce its size. (SDA/swi)
