Information on the Target

Kemira Oyj has concluded an accelerated book-built offering, through which it has divested its entire stake in Tikkurila Oyj. This divestment involved 6,175,155 shares, corresponding to 14.0% of Tikkurila's total shares and voting rights. The shares were sold at a price of EUR 15.80 each, leading to gross proceeds of approximately EUR 97.6 million. Importantly, this transaction will not affect Kemira's financial outcomes.

Jyrki Mäki-Kala, CFO of Kemira Oyj, remarked on the success of Tikkurila’s listing on the NASDAQ OMX Helsinki, highlighting that 86% of Tikkurila’s shares had previously been distributed as dividends to Kemira shareholders. This sale of remaining shares marks a pivotal step in Kemira’s strategic focus on water treatment chemistry.

Industry Overview in Finland

The Finnish chemicals industry has evolved significantly, with a strong emphasis on sustainability and innovation. Finland's chemical sector comprises a comprehensive range of products and services catering to various industries, including construction, manufacturing, and personal care. Leading companies have recognized the necessity of adapting to environmental regulations, which has driven a rise in the demand for more sustainable chemical solutions.

Tikkurila, specializing in paint and coatings, operates within this dynamic landscape. The firm is well-regarded for its commitment to quality and environmentally-friendly products, contributing positively to the Finnish chemicals sector. Industry-wide, companies are increasingly investing in R&D to meet the shifting demands for eco-friendly alternatives.

Moreover, the European Union's stringent environmental regulations have further influenced the direction of the Finnish chemicals industry. Finnish companies are now prioritizing resource efficiency and waste reduction, alongside the development of circular economy practices. This focus not only boosts competitiveness but also aligns with global sustainability trends.

In summary, the Finnish chemicals industry is adapting to market demands for sustainable production while embracing innovation as a key driver for growth. This proactive approach positions firms like Tikkurila favorably to navigate the evolving marketplace.

The Rationale Behind the Deal

The decision to divest Tikkurila shares supports Kemira’s strategy of honing in on core business segments, particularly water treatment chemistry. By reallocating resources and capital from this sale, Kemira aims to enhance its capabilities and innovation in providing solutions for water-intensive industries.

The successful conclusion of this transaction also reflects positive market conditions, allowing Kemira to capitalize on favorable stock prices and further strengthen its financial position. The sale enables Kemira to focus on growth avenues within its primary areas of expertise while ensuring financial stability.

Information About the Investor

This transaction was managed by Danske Bank A/S and Deutsche Bank AG, London Branch, acting as joint bookrunners and managers for the offering. Both institutions have robust experience in capital markets and are well-regarded for their expertise in facilitating transactions, which enhances their capability to manage such significant offerings effectively.

Both banks are regulated within their respective countries, ensuring compliance with financial laws and guidelines, thus providing an added layer of assurance to investors participating in the Placing.

View of Dealert

This deal appears to be a tactical move for Kemira, effectively aligning with its strategic focus on core competencies in water treatment. By divesting its interests in Tikkurila, Kemira is better positioned to dedicate resources to areas with higher growth potential and profitability.

Additionally, the successful sale reflects positive investor sentiment towards Tikkurila, indicating strong market interest. This bodes well for Kemira as it reinforces the value proposition of its remaining businesses.

Given the environmental trends driving the chemicals industry, the move also positions Kemira strategically to tap into the rising demand for sustainable solutions, which may yield substantial returns in the long term.

Overall, the divestment can be seen as a prudent investment decision that aligns with shareholder interests while facilitating Kemira’s strategic shift towards greater innovation and sustained growth in its core business segments.

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