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Floridienne Group made a €21.5 million ($29.6 million) net loss after tax in 2013, as the dispute with 5N Plus and the judicial reorganisation of Floridienne Chimie weighed on profits.
Floridienne Group was hit by a non-recurring cost of €11.3 million for Floridienne Chimie’s losses and the costs of the cadmium salts producer’s judicial reorganisation.
Floridienne Chimie was given two months to find a buyer on March 10 after the company lost more than €30 million between 2010 and 2013 due to European environmental regulations on heavy metals, and difficulties in the European construction sector and the photovoltaic panel market.
Floridienne invested “considerable amounts” between 2009 and 2013 to meet new environmental regulations standards, the company said, which weighed on Floridienne Chimie’s financial situation.
“Having failed to find a solution […] and in the absence of favourable predictions for 2014, Floridienne Chimie, a 60% subsidiary of the Floridienne Group, started judicial reorganisation early 2014,” the company said.
The dispute with Canada-based 5N Plus, which took over Floridienne’s 42% interest in MCP in 2011, cost Floridienne a further €9.2 million in 2013.
5N Plus launched arbitration proceedings against the former shareholders in November 2012, claiming they had overstated the value of MCP, which 5N Plus bought for $327 million in February 2011.
The resolution of the dispute between 5N Plus and former shareholders of MCP generated a loss of €8.1 million. Floridienne also sold its remaining 5 million shares in 5N Plus during 2013, and the declining value of the shares led to a write-off of €1.1 million.
Floridienne gained €9.2 million from the share sale, and secured a €12.7 million immediate payment from 5N Plus. On April 9, 5N Plus will pay Floridienne a further €1.75 million.
Following the sell-off of Floridienne Chimie, the group expects prospects in its chemical division to improve in 2014.
Chloe Smith chloe.smith@metalbulletin.com Twitter: @ChloeSmith_MB