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Bluestar Adisseo seeks $1.56b in HK IPO

(China Daily)
Updated: 2010-11-13 09:41

BEIJING - Bluestar Adisseo Nutrition Group, the French animal-nutrition company backed by China National Chemical Corp (ChemChina), is seeking HK$12.08 billion ($1.56 billion) in a Hong Kong initial public offering, according to a term sheet sent to investors.

Bluestar Adisseo is offering 2.3 billion shares, or 25 percent of the company, at HK$3.50 to HK$5.25.

Pricing the stock at the top end of the range would give the company a market capitalization of about $6.23 billion. Deutsche Bank AG and Morgan Stanley are managing the sale.

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The company will use 40 percent of the IPO proceeds to expand and upgrade its European plants and another 40 percent to develop its feed business, according to the term sheet.

The stock offered includes 50 percent new shares and 50 percent existing equity from China National Bluestar Group Corp, a unit of ChemChina.

China National Bluestar bought the Adisseo Group for $480 million in 2006.

Bluestar Adisseo plans to set the price for its shares on Nov 24 in Asia and start trading on Nov 30 with the ticker 1095, the terms show.

The move, which will be the second listing by a French company in Hong Kong, underlines the increasing importance of the Chinese and Asian markets, said a company statement.

ChemChina President Ren Jianxin said the company would take advantage of its rich resources in the country to help Bluestar Adisseo to achieve further development.

"In all of our companies we show respect for different cultures, which I believe is the key to success," said Ren.

ChemChina currently has four overseas subsidiaries. Besides the acquisition of Adisseo, it also acquired the organic silicon business of another French company, Rhodia.

Ren informed China Daily that the two deals clearly indicated that the company's business focus is to be a leading company in the new materials and specialty chemical products sector.

In October 2008 ChemChina completed its stake transfer deal with the Blackstone Group, which saw the US private equity company pay $600 million for a 20 percent share in its subsidiary BlueStar.

Commenting on the deal, Ren said it would help BlueStar improve its technology and management levels.

China Daily - Bloomberg News