Synthomer - comment

Earlier this month, we commented on the appointment of FTI to advise the banks. Now, we are seeing that this will include an independent business review. We expect this will take time and will not be positive for the equity; we see the valuation as being less than the debt, although FTI may see a controlled sale process as generating additional value (as opposed to a sale of the full business). A sale of the medical gloves business looks likely to us. The Resins business, which Synthomer purchased from Eastman, is the highest-margin part of the group, and Synthomer will want to avoid it being put on the block in return for covenant relief.