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Clariant (SIX:CLN) disclosed that the planned sale of its "Industrial Park Fechenheim" in Frankfurt has been halted due to the City of Frankfurt exercising pre-emption rights, causing a setback in the company’s divestiture plan.
As of 09:39 GMT. Clariant shares were up by about 0.5%.
The transaction, which was anticipated to generate €95 million in cash and contribute CHF70 million to EBITDA in 2025, is part of Clariant’s strategy to divest non-operational assets. The expected proceeds from this sale were projected to lower the company’s net debt to EBITDA ratio by 0.1x for the fiscal year 2025.
Despite this development, Clariant remains determined to sell the property and is seeking alternative solutions. The company has reiterated its commitment to the divestment, emphasizing that the industrial park does not host any of its operational activities.
The financial implications of the withdrawn purchase by Lugman Group are significant for Clariant. The deal was poised to provide a substantial cash influx and positively impact the company’s future financial metrics.
Citi analysts have weighed in on the situation, observing that the expected proceeds from this disposal were not factored into Clariant’s FY25 earnings guidance.
Consequently, Citi anticipates that the current outlook for the company will remain unchanged despite this setback.
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