CPH Chemie + Papier Holding AG Plans to Spin-Off Paper Business

On March 20, 2024, CPH Chemie + Papier Holding AG (CPH) announced a strategic move to separate its Perlen Paper business from its Chemistry and Packaging operations. The decision, aimed at restructuring the conglomerate into two distinct entities, will see the non-paper activities rebranded as CPH Group AG, while the new spin-off entity focusing on paper and real estate in Perlen, Switzerland, will be known as Perlen Industrieholding AG.

The separation will occur through a dividend distribution of shares of the newly formed Perlen Industrieholding AG to all current CPH shareholders. CPH Group AG will continue its listing on the SIX Swiss Exchange, with Perlen Industrieholding AG's shares being made available for over-the-counter trading. Despite the restructuring, the operational dynamics within the Chemistry, Packaging, and Paper divisions are expected to remain unchanged, preserving their respective market presence and brand identities.

This strategic move is designed to enhance business focus and mitigate the challenges faced by the volatile Paper division in a contracting market. Both the Chemistry and Packaging divisions have displayed robust growth, contrasting the Paper division's fluctuating performance. The transaction, pending shareholder and regulatory approval, is slated for completion by the end of Q2 2024. An Extraordinary General Meeting scheduled for June 20, 2024, will seek shareholder consent for the spin-off, with further details to be communicated subsequently.