Novel coronavirus Axalta Coating Systems said in March 31st that it had concluded its assessment of strategic alternatives and would continue to push ahead with its business plan based on the global market chaos caused by the new coronavirus pandemic.
The Philadelphia based liquid and powder paint supplier said it had in-depth negotiations with interested companies, but its Board believed that continuing its strategic plan was the best way to maximize shareholder value, foreign media reported.
During the last nine months of the assessment, axel and its representatives communicated with more than 50 participants, including companies in the paint, chemical and industrial sectors, as well as financial sponsors in the US, Europe and Asia, to discuss potential sales of the company or business segment, Axel said. Axel has signed confidentiality agreements with 18 potential buyers to facilitate due diligence.
The Wall Street Journal quoted people familiar with the matter as saying that Axel had been negotiating with Clayton dubier & rice, a PPG industry and acquisition company, about $7.5 billion in transaction price before, but the negotiation stalled after Axel's share price fell and the company cancelled financial guidance.
Tu noted that due to the continuous expansion of the global and U.S. new crown epidemic, investors are increasingly worried about the economic outlook, resulting in the recent continuous decline of U.S. stocks, and the stock price of Astor has also been seriously affected. In the past month, Axel's share price fell 54.03% and its market value shrank by $2082 million. Since 2020, its share price has fallen by 85.59% and its market value has shrunk by $3.298 billion (23.356 billion yuan).
Axel was listed on the New York Stock Exchange in November 2014, with an issue price of $19.50/share. However, on March 12, 2020, aiside fell below the issuance price to US $17.97 per share; since then, aiside's share price has been affected by the epidemic and other factors. As of the close of April 2 local time, Axel was 19.05% lower than the issue price.
According to previous financial guidance, Axel expects net sales to grow by about 0-1% in 2020, adjusted EBIT to be $710-750 million, adjusted diluted EPS to be $1.85-2.00, and depreciation and amortization costs to be about $330 million, including accelerated depreciation of about $7 million due to plant closure in Belgium and free cash flow to be $450-490 million.
Eister said it had taken action to address the impact of reduced customer demand on some of its business areas, including restructuring costs. "We believe that the actions we are taking, coupled with a strong balance sheet and sufficient liquidity, will enable us to emerge from this crisis in a strong manner." (coating boundary)
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