SGL Group signed agreement to sell its graphite electrode busine to Showa Denko (SDK)
21/10/2016
Transaction expected to close in the first half of 2017
Dr. J rgen K hler, CEO of SGL Group: Today's transaction is an important milestone in our strategic realignment. We are pleased that we have found the ideal new owner for our graphite electrodes business. We will now be focusing our resources fully on our growth areas
Hideo Ichikawa, President and CEO of Showa Denko: Through this transaction, SDK aims to become a truly global leader in the graphite electrodes industry
In order to maximize proceeds, the cathodes, furnace linings, and carbon electrode business (CFL/CE), which is also part of the business unit Performance Products (PP), will be sold separately in 2017
Wiesbaden, October 20, 2016. Today, SGL Group signed the sale and purchase agreement to sell its graphite electrode (GE) business to Showa Denko (Japan). The two parties have agreed on an enterprise value (cash and debt free) of 350 million euros, which, after deduction of standard debt-like items (mainly pension and restructuring provisions) results in cash proceeds of at least 200 million euros. The final proceeds will be determined based on the balance sheets at closing. The transaction is subject to customary closing conditions, relating in particular to antitrust approvals. Closing is expected in the first half of 2017.
Showa Denko is the ideal new owner for our graphite electrodes business. Both companies enjoy a high reputation in the market and assign great importance to the quality of their products. The combined business will be well positioned to serve customers on a global basis , said Dr. J rgen K hler, CEO of SGL Group. The transaction is an important milestone for our strategic realignment. We will now be focusing our resources fully on our growth areas Composites - Fibers & Materials (CFM) and Graphite Materials & Systems (GMS) taking advantage of three megatrends mobility, energy supply, and digitization.
Showa Denko and the graphite electrodes business of SGL are truly well-matched , says Hideo Ichikawa, President and CEO of Showa Denko. Through this transaction, SDK aims to become a truly global leader in graphite electrode industry by establishing a cost competitive platform in all three key regions, Europe, the U.S., and Asia, and by producing the highest quality graphite electrode globally.
Showa Denko is one of Japan's leading chemical companies. In the fiscal year 2015, Showa Denko generated sales of 781 billion yen (6.8 billion euros) and an operating income of 34 billion yen (0.3 billion euros). The company employed a workforce of 10,561 at the end of 2015.
Following the closing of the transaction, approximately 900 employees and six production sites in Germany, Austria, Spain, USA, and Malaysia will be transferred from SGL Group to their new owner.
The sale will result in impairment charges of 40-50 million euros in the current fiscal year of SGL Group, which are related to transaction costs and the continuation of the GE business until the closing date. The cash proceeds equal the book value as of September 30, 2016. Thus, the transaction does not trigger any write-downs on the book value in the GE business.
To maximize proceeds, the CFL/CE business, which is also part of the business unit PP, will be sold separately, with the sales process to be continued in early 2017. Given the outcome of the GE sale, SGL Group is now confident to achieve more than the book value of the former business unit PP in the aggregated transactions.
SGL Group is convinced that the proceeds of the GE sale and the expected proceeds of the CFL/CE sale will contribute to a significant reduction of the Group's net debt position and thereby improve the balance sheet ratios. In addition, the company is currently evaluating the merits and viability of a potential near term rights issue utilising the existing authorized capital framework to further improve the capital structure and restore key financial metrics to create a solid foundation for our growth businesses CFM and GMS.
Against the backdrop of the disposal procedures for the GE and the CFL/CE businesses, the measures to adjust the administrative structures to a smaller SGL Group following the entire PP disposal, and the related other transitional matters in connection with the repositioning of the SGL Group to focus on its growth businesses CFM and GMS, the company decided to withdraw its guidance as provided in its report on the first half year 2016 with immediate effect, and to abstain for the time being from providing any short term profit guidance during this transformation phase. SGL Group plans to resume providing a new profit guidance around the time of the publication of its 2016 annual report in March 2017.
About SGL Group - The Carbon Company
SGL Group is one of the world's leading manufacturers of carbon-based products and materials. It has a comprehensive portfolio ranging from carbon and graphite products to carbon fibers and composites. SGL Group's core competencies are its expertise in high-temperature technology as well as its applications and engineering know-how gained over many years. These competencies enable the Company to make full use of its broad material base. SGL Group's carbon-based materials combine several unique properties such as very good electrical and thermal conductivity, heat and corrosion resistance as well as high mechanical strength combined with low weight. Due to industrialization in the growth regions of Asia and Latin America and increased substitution of traditional with innovative materials, there is a growing demand for SGL Group's high-performance materials and products. Products from SGL Group are used predominantly in the steel, aluminum, automotive and chem
LINK: | http://www.sglnewsroom.com/en/reports/report-detail-page.19137.php... |
See more stories from sgl |
Most recent headlines
04/08/2024
Dalet Appoints Santiago Solanas as CEO to Lead Next Era of Growth and Innovation
Dalet, a leading technology and service provider for media-rich organizations, is excited to announce Santiago Solanas as its new Chief Executive Officer (CEO)....
03/06/2024
Dalet and Veritone Reach Agreement to Distribute, Transact and Monetize Media Archives
Dalet, a leading technology and service provider for media-rich organizations, a...
02/05/2024
Samba TV Launches New Generative AI Ad Solution
NEW YORK Samba TV is debuting new capabilities for Samba AI, the company's suite of generative AI technologies. Samba AI's new capabilities provide a re...
02/05/2024
Television Academy Foundation Names Anne Vasquez Executive Director
LOS ANGELES The Television Academy Foundation has announced the appointment of Anne Vasquez as its executive director effective May 13....
02/05/2024
SAG-AFTRA to License Nielsen Streaming Data
NEW YORK SAG-AFTRA has inked a deal with Nielsen to become its third-party provider of streaming content measurement and has announced that it will use the Niel...
02/05/2024
Cineverse Unveils Public Beta of AI-Powered cineSearch
LOS ANGELES Cineverse has debuted cineSearch, its previously announced new content search and discovery service in public Beta....
02/05/2024
Can AI find a way to reduce the broadcast industry's energy consumption?
OpenDrives Trevor Morgan asks if AI has the answer to making data centres for the media and entertainment industry more sustainable By Contributor Published:...
02/05/2024
Bill Baggelaar Asks the Questions: An Unfiltered Look at Media Supply Chain Transformation
Bill Baggelaar Asks the Questions: An Unfiltered Look at Media Supply Chain Tran...
02/05/2024
Two Boston Conservatory at Berklee Alums Nominated for Tony Awards
Two Boston Conservatory at Berklee Alums Nominated for Tony Awards An additional eight alums and two current students performed in nominated productions. By...
02/05/2024
Viewers Call Finding New TV Content Frustrating' in Comcast Advertising Report
A majority of viewers 51% said the difficulty in finding new content on TV c...
02/05/2024
Programming Legend Art Moore Retiring After 53 Years With ABC Stations
Art Moore, who headed production of long-running syndicated series, including Live, said he plans to retire in September as VP of programming for WABC New York....
02/05/2024
Nexstar Will Move The CW Affiliation to WGN Chicago
Nexstar Media Group, which owns The CW, said the network's affiliation will be moving to Nexstar-owned WGN Chicago....
02/05/2024
Future Today Puts First Original Shows on Fawesome Channel (NewFronts)
Future Today said that it plans to launch the first original shows on its Fawesome streaming channel....
02/05/2024
Behind the Music' Returns on Paramount Plus
Behind the Music is back on Paramount Plus with new episodes May 1. Those profiled in the season two episodes are Bell Biv DeVoe, Trace Adkins and Wolfgang Van ...
02/05/2024
All American: Homecoming' Returns on The CW July 8
All American: Homecoming starts season three on The CW Monday, July 8, while season two of 61st Street kicks off Monday, July 22....
02/05/2024
Jerry Seinfeld's Pop-Tart Movie Starts on Netflix May 3
Unfrosted, a movie about the race to create a game-changing breakfast pastry, such as, say, the Pop-Tart, debuts on Netflix May 3. Jerry Seinfeld directs, his f...
02/05/2024
Former BT Sport COO Jamie Hindhaugh joins EMG / Gravity Media
Charlie Cubbon has also been appointed chief operating officer By Matthew Corrigan Published: May 2, 2024 Charlie Cubbon has also been appointed chief ope...
02/05/2024
Durable Goods Signs Lionel Coleman
Durable Goods Signs Lionel Coleman Brie Clayton May 2, 2024 0 Comments Durable Goods has signed multi-hyphenate director Lionel Coleman for commercial...
02/05/2024
Hitsujibungaku's Music Video GO!!! Shot by Kyotaro Hayashi with Blackmagic Cinema Camera 6K
Hitsujibungaku's Music Video GO!!! Shot by Kyotaro Hayashi with Blackmagic C...
02/05/2024
Diamond Sports RSNs Go Dark On Comcast Systems
Bally Sports Regional Networks were taken off Comcast's systems on April 30 when their existing distribution agreement expired and Diamond Sports Group was ...
02/05/2024
Diamond Sports Group, DirecTV Renew Distribution Deal
SOUTHPORT, Conn. and EL SEGUNDO, Calif. Diamond Sports Group ( Diamond or the Company ) and DirecTV have announced that they have reached a multi-year renewal...
02/05/2024
Three Nexstar Stations to Become CW Affiliates
IRVING, Texas Nexstar Media Group has announced that its owned and operated television stations in Chicago, Illinois (DMA #3), Norfolk, Virginia (DMA #43), and ...
02/05/2024
FCC, FTC Ink Agreement to Cooperate on Net Neutrality Enforcement
WASHINGTON, D.C. The Federal Communications Commission and Federal Trade Commission have signed a Memorandum of Understanding to coordinate consumer protection ...
02/05/2024
Haivision Celebrates 20th Anniversary
MONTREAL Haivision Systems Inc. is marking its 20th anniversary by detailing some of the accomplishments and developments that have helped the company become a ...
02/05/2024
Agora Introduces Adaptive Video Optimization Technology
SANTA CLARA, Calif. Agora today unveiled its Adaptive Video Optimization (AVO) technology that uses machine learning to adjust parameters dynamically at every s...
02/05/2024
Study: Streaming Market Is Saturated But Subscriptions Continue to Grow
NEW YORK Kantar has released a new study showing the U.S. streaming market has hit a saturation point, with the household penetration rate stagnating and at nea...
02/05/2024
Samba TV To Spotlight New Capabilities For Generative AI Ad Solution
NEW YORK Samba TV is debuting new capabilities for Samba AI, the company's suite of generative AI technologies, at the 2024 IAB (Interactive Advertising Bur...
02/05/2024
GSTV Pumps Up Research, Programming at NewFront
GSTV, the network that programs screens at gas stations, will be talking about new research and new programming at its NewFront presentation Wednesday....
02/05/2024
Skeem Saam: Wednesday's episode, 1 May 2024 [video]
Skeem Saam: Wednesday's episode, 1 May 2024 [video]Missed an episode of Skeem Saam? No problem! Watch the latest episode of your favourite South African soa...
02/05/2024
Prison Journalism: It's alright not to have
Prison Journalism: It's alright not to haveWesley Leong was incarcerated at the age of 15 in 1996 at Pollsmoor Prison. He is currently part of Restore's...
02/05/2024
Tonight on Smoke and Mirrors: Thandiswa's quest to reclaim Caesar's house intensifies
Tonight on Smoke and Mirrors: Lulu navigates the complexities of her relationshi...
02/05/2024
GeForce NOW Delivers 24 A-May-zing Games This Month
GeForce NOW brings 24 new games for members this month. Ninja Theory's highly anticipated Senua's Saga: Hellblade II will be coming to the cloud soon -...
02/05/2024
NVIDIA AI Microservices for Drug Discovery, Digital Health Now Integrated With AWS
Harnessing optimized AI models for healthcare is easier than ever as NVIDIA NIM,...
02/05/2024
ARRI announces the ALEXA 35 Live - Multicam System
ARRI announces the ALEXA 35 Live - Multicam System posted: 02/05/2024 Arri Alexa 35 Live - Multicam System ARRI announces the ALEXA 35 Live - Multicam Sy...
02/05/2024
The Women': Author shines light on forgotten women in war
The Women': Author shines light on forgotten women in warThe bestselling author of The Nightingale', Kristin Hannah, has outdone herself with her new h...
02/05/2024
May 01, 2024
New technique improves T cell-based immunotherapies for solid tumors Scripps Research scientists help T cells more effectively kill solid tumors cells in vitro ...
01/05/2024
Release Rundown: What to Watch in May, From I Saw the TV Glow to Power
Owen (Justice Smith) and Maddy (Brigette Lundy-Paine) develop an eerie connection to a supernatural TV show in Jane Schoebrun's I Saw the TV Glow....
01/05/2024
Celebrate May the 4th With Special Star Wars' Playlists, Audiobooks, and More
Spotify's Star Wars celebrations are in full Force starting today, and this ...
01/05/2024
Spotify's New Hardcore Gardening Playlist and Brain Dead Collab Will Rattle Greenhouses Everywhere
All around the world, millions of Spotify fans love listening to hardcore punk m...
01/05/2024
THE CALL FOR THE FIFTH PRESIDENTIAL EMPLOYMENT STIMULUS PROGRAMME (PESP5) FOCUSED ON THE AUDIO-VISUAL INDUSTRY, IS OPEN.
THE CALL FOR THE FIFTH PRESIDENTIAL EMPLOYMENT STIMULUS PROGRAMME (PESP5) FOCUSE...
01/05/2024
QTAKE Pioneers Live 3D Stream to Apple Vision Pro
QTAKE, the leading video assist and on-set collaboration software trusted by professional filmmakers worldwide, launched a new cutting-edge feature at NAB 2024....
01/05/2024
LA County Opens Entertainment Business Interruption Fund Grant Program for Small Business, LAEDC Offers Updates
In HPA's ongoing focus on providing input and insight from city and county g...
01/05/2024
Trailblazing AI Storytelling by Empowering Storytellers: Curious Refuge
HPA Newsline had the opportunity to speak with Caleb and Shelby Ward, founders of Curious Refuge. Caleb and Shelby were participants in the 2024 HPA Tech Retrea...
01/05/2024
Supporting Global Air Traffic Modernization through Managed Services Infrastructure
L3Harris works with air navigation service providers who efficiently manage air ...
01/05/2024
Q&A with Scott Alexander, Aerojet Rocketdyne's new Missile Solutions President
Scott Alexander, Missile Solutions President, Aerojet Rocketdyne...
01/05/2024
Comcast: More Than Half of Viewers Frustrated About Finding Content
NEW YORK Just over half of U.S. viewers are frustrated over their ability to be able to find content to watch on TV according to Comcast....
01/05/2024
Bally RSNs Go Dark On Comcast Systems
Bally Sports Regional Networks were taken off Comcast's systems on April 30 when their existing distribution agreement expired and Diamond Sports Group was ...
01/05/2024
NXTGENbps powers Molinare's Notorious DIT
NXTGENbps battery solutions are designed to replace diesel generators and offer silent, emission-free power for various applications in film, TV, outside broadc...
01/05/2024
Elodie Ichter Joins Light Iron as Senior Colorist
Light Iron, the post-production creative-services division of Panavision, is excited to announce that lodie Ichter has joined the company's artist roster a...
01/05/2024
CJP presents live mo-cap demos at MPTS
CJP Broadcast Service Solutions, systems integration, production and content digitisation specialist, will feature live motion capture demonstrations at the 202...