Performance boosts outlook at Nuplex

Photo / Kenny Rodger
Photo / Kenny Rodger

Nuplex Industries, whose independent directors are backing a $1.05 billion takeover offer from Allnex Belgium, has raised its 2016 earnings guidance, reflecting a stronger performance in Europe, the Middle East and Africa, and the Americas in March and April.

The company said operating earnings before interest, tax, depreciation and amortisation for the year ending June 30 would be in a range of $157 million and $161 million, up from its previous guidance of $145 million to $157 million.

Nuplex said the improved guidance assumes a continuation of foreign exchange rates at the end of April and includes a full 12-month contribution from the company's ANZ pulp and paper business. That business is being sold and would be reported as discontinued operations. Excluding discontinued operations, operating ebitda would be $154 million to $158 million.

Nuplex and US-based Allnex have signed a scheme implementation agreement, which values Nuplex at $5.55 a share, including a 12c per share dividend payment in February. That's a 44 per cent premium to where the shares were trading before the February 15 announcement.

The company's shares closed up 4c at $5.33 yesterday.

- BusinessDesk

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