Elementis PLC Response to open letter from Franklin Templeton (0945N)
20 Septiembre 2023 - 6:09AM
UK Regulatory
TIDMELM
RNS Number : 0945N
Elementis PLC
20 September 2023
London, 20 September 2023
Elementis plc
Response to open letter from Franklin Templeton
The Board of Elementis plc (the "Company" or "Elementis") notes
the open letter from Franklin Mutual Advisers ("Franklin"),
published today, in which Franklin requests the Board to initiate
an immediate sale of the Company.
The Board engages with and welcomes feedback from all
shareholders and is focused on delivering value for
stakeholders.
The Board has held a series of discussions with Franklin to
understand their view and consider their request. After careful
consideration, with the support of its advisors, the Board does not
consider an immediate sale of the Company to be in the best
interests of its shareholders and is issuing this announcement to
clarify its response.
The Board agrees with Franklin's comments on Elementis'
attractive assets
The Board notes and agrees with Franklin's comments about
Elementis' attractive assets. In particular, the comments about our
healthy market positions, strong gross margins that demonstrate the
premium nature of our products and potential for upside in a
cyclical recovery alongside substantial operational improvement
initiatives.
Pure specialty chemicals business on track to achieve full
potential
Following the successful divestment of the Chromium business
which completed in January 2023, Elementis is a pure play specialty
chemicals business focused on adding value by making our customers'
formulations look, feel, and perform better. Elementis is now a
higher growth, higher margin, less cyclical and less carbon
intensive business.
This focus on advantaged, high value products will enable us to
deliver higher quality earnings and margins, with lower volatility,
and generate significant shareholder value.
We continue to make progress towards our medium-term goal of 17%
adjusted operating margin. As a cash generative business, combined
with the sale of our Chromium business, we continue to make
progress towards our target of below 1.5x net debt / EBITDA.
Interim results demonstrate resilient performance alongside
ongoing execution of the strategy
In our 2023 interims we delivered resilient results in
challenging macro-economic conditions that have seen many other
specialty chemicals companies downgrade expectations for 2023.
Alongside this resilient performance Elementis continues to execute
against its strategy which is built around the three pillars of
Innovation, Growth and Efficiency.
Board focus on driving value for shareholders
The Board regularly views the Company's strategic alternatives
with its financial advisors. Our Board does not believe that
Franklin's request to initiate an immediate sale of the Company is
currently in the best interests of its shareholders given the
substantial value still be to be realised.
We look forward to updating shareholders on our strategic
progress, including the next wave of growth and efficiency
initiatives, at our upcoming Capital Markets Day on 14 November
2023.
Enquiries
Elementis plc
Paul Waterman, Chief Executive Officer
Ralph Hewins, Chief Financial Officer
Eva Hatfield, Head of Investor Relations Tel: +44 7553 340
380
Teneo
Martin Robinson Tel: +44 (0) 20 7353 4200
Olivia Peters Email: elementis@teneo.com
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END
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