UPDATE: RHJ International Seeks To Raise Liquidity Level, Sell Assets
July 01 2009 - 11:47AM
Dow Jones News
Belgian investment company RHJ International SA (RHJI.BT) is
seeking to increase its cash level for future investments and sell
some assets, its chief executive said Wednesday, as speculation
about the company's renewed interest in General Motors Corp.'s (GM)
European unit Adam Opel GmbH grows.
The Brussels-based holding company is looking to "raise the
liquidity level so that at the end we would have significantly more
money than EUR200 million," for future investment, Chief Executive
Leonhard Fischer told a conference call.
However, analysts doubt RHJ International has enough money to
buy Opel.
Opel "is much too big," said KBC analyst Tom Simonts, adding
RHJI has at most just over EUR300 million to invest, and little
assets to sell for good money. Their bid might be a move to raise
their profile in Germany, he said.
Fischer declined to comment on Opel during the conference call,
other than to say "we would always look at special opportunities if
they are very special."
According to press reports, RHJI is still in the running to buy
Opel, after bidding for it earlier this year, should negotiations
with the preferred bidder, the Canadian auto supplier Magna
International Inc. (MGA), fail.
"I believe they won't succeed" in buying Opel, said Emmanuel
Carlier, an analyst at Petercam in Brussels. He said they don't
have enough cash to buy it, adding bank financing is a possibility,
but Germany might not like more debt on Opel's shoulders.
RHJI posted about EUR1 billion in consolidated net loss for its
fiscal year ended March 31, double on the year, as the current
economic downturn took its toll on the company's activities,
especially on its automotive component businesses.
RHJI controls and has holdings in companies as diverse as auto
parts maker, Tokyo-listed Asahi Tec Corp. (5606.TO), and Columbia
Music Entertainment (6791.TO), which produces and distributes
music.
-By Alessandro Torello, Dow Jones Newswires; +32 2 741 14 88;
alessandro.torello@dowjones.com