EANS-Adhoc: Semperit AG Holding / Semperit and Sri Trang sign an agreement on the demerger of the joint venture Siam Sempermed // Significant one-time accounting effects in 2016/2017

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Disclosed inside information pursuant to article 17 Market Abuse Regulation
(MAR) transmitted by euro adhoc with the aim of a Europe-wide distribution.
The issuer is solely responsible for the content of this announcement.
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Joint Ventures/Cooperation/Collaboration
18.01.2017

* Semperit will take over the joint Sempermed distribution company in
the USA as well as production companies of the Industrial Sector in
China * Sri Trang will take over the joint glove production in
Thailand * The Semperflex joint venture in Thailand will be continued
* Semperit will receive a compensation payment amounting to USD 167.5
million (approx. EUR 157 million) before taxes * Together with the
demerger, there will be a settlement of the arbitration proceedings
and the legal disputes by mutual agreement * There will be negative
special effects of approx. EUR 30 to 40 million in the consolidated
financial statement of 2016 * There will be positive special effects
of approx. EUR 100 to 115 million at closing in 2017

The Austrian Semperit Group ("Semperit") and the Thai Sri Trang-Agro
Industry Public Co Ltd Group ("Sri Trang") have agreed on the
termination of almost all joint business activities. An appropriate
agreement was signed today. It provides for the takeover of the joint
distribution company in the USA (Sempermed USA) by Semperit. In
addition, Semperit will take over the previous Sempermed joint
venture companies in Singapore, China and Brazil as well as the
majority interest in the Malaysian Formtech (producer of ceramic
moulds for the glove production). The Sempermed brands will continue
to be owned solely by Semperit.

Sri Trang will take over the glove production of Siam Sempermed
Corporation Ltd (SSC) in Thailand, which has been operated jointly to
date.

In the Industrial Sector, Semperit will fully take over Semperflex
Shanghai with a hydraulic hose production site in China. With regard
to the Semperform business activities in China, Semperit will
increase its share from 90% to 100%. In Thailand, the joint venture
Semperflex Asia (SAC) will be continued. Here, Semperit on the one
hand and Sri Trang together with further partners on the other hand
each hold an unchanged share of 50% of the production for hydraulic
hoses in Hatyai/Thailand. Semperit will receive an option to take
over the remaining 50% of SAC for USD 60 million (approx. EUR 57
million) from the joint venture partners.

Within the framework of the termination of the joint ventures,
Semperit will receive a one-time compensation payment amounting to
USD 167.5 million (approx. EUR 157 million) before taxes. Immediately
prior to closing, SSC will declare a dividend equivalent to around
USD 118.2 million and SAC a dividend equivalent to USD 30 million.
From SSC's dividend Semperit will receive around USD 51 million
(approx. EUR 48 million) before taxes in cash, the rest of Semperit's
share of SSC's dividend will be set-off as part of the overall
transaction.

Semperit will unabatedly continue its growth path in both the
Industrial and the Medical Sectors.

The transaction is subject to the approval of the Supervisory Board
of Semperit, a corresponding resolution passed at the Extraordinary
General Meeting of Sri Trang as well as closing conditions. The
closing of the transaction is expected for March 2017.

In case of a successful closing, all pending arbitration and civil
proceedings between the Semperit Group on one hand and the Sri Trang
Group and SSC on the other hand will be settled by mutual consent.
Common break-up fees were agreed in case of failure.

From today's point of view, a successful closing of the transaction
would lead to positive special effects in Semperit's Group results
amounting to around EUR 100 to 115 million in the financial year
2017. This is up against negative special effects in the Group's
result of 2016 amounting to around EUR 30 to 40 million mainly due to
non-cash effective value adjustments and deferred taxes. These
adjustments will be necessary relating to the planned termination of
the joint venture combined with the development in the Sempermed
segment, which is weaker than expected. Due to these expected special
effects, the existing dividend policy of Semperit has to be evaluated
for the years 2016 and 2017.

Note: The transaction will principally be settled in US Dollars so
that the mentioned Euro amounts may still be subject to exchange rate
fluctuations.

This document has been made up in German which is the official
version. In case of discrepancies with the English translation, the
German version shall prevail.

About Semperit The publicly listed company Semperit AG Holding is an
internationally-oriented group that develops, produces, and sells
highly specialised rubber and plastic products in more than 100
countries for the medical and industrial sectors: examination and
surgical gloves, hydraulic and industrial hoses, conveyor belts,
escalator handrails, construction profiles, cable car rings, and
products for railway superstructures. The headquarters of this
traditional Austrian company, which was founded in 1824, are located
in Vienna. The Semperit Group employs more than 7,000 people
worldwide, including close to 4,100 in Asia and more than 800 in
Austria (Vienna and production site in Wimpassing, Lower Austria).
The group has 22 manufacturing facilities worldwide and numerous
sales offices in Europe, Asia, America and Australia. In 2015, the
group generated sales of EUR 915 million and EBITDA of EUR 96
million.

Further inquiry note:
Martina Büchele
Group Communications Manager
Tel.: +43 676 8715 8621
martina.buechele@semperitgroup.com
www.semperitgroup.com

Stefan Marin
Head of Investor Relations
Tel.: +43 676 8715 8210
stefan.marin@semperitgroup.com

end of announcement euro adhoc
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issuer: Semperit AG Holding
Modecenterstrasse 22
A-1030 Wien
phone: +43 1 79 777-210
FAX: +43 1 79 777-602
WWW: www.semperitgroup.com
sector: Synthetics & Plastics
ISIN: AT0000785555
indexes: WBI, ATX Prime, ViDX, Prime Market, ATX GP
stockmarkets: official market: Wien
language: English

Original-Content von: Semperit AG Holding, übermittelt durch news aktuell