RHI has decided to initiate the sale of its Insulating division with the lead company Heraklith AG. An IPO, the alternative option to the further strategic development of this division, will not be pursued any further due to the high number of potential buyers who have shown serious interest.
RHI will now ask several potential buyers to place their bids and, following the preparation of a short list in October 2005, enable selected investors who can strengthen Heraklith in its strategic development in Central and Eastern Europe, especially in Russia, to perform a comprehensive due diligence analysis.
The completion of the transaction (closing) is scheduled for the first quarter of 2006, following the preparation of Heraklith’s financial statements 2005.