BorsodChem Chief Executive Officer Mr László F. Kovács is stepping down after 15 years on the job, according to the Company’s statement on Friday. Mr Kovács will be replaced by Kay Gugler, 51, who was elected to BorsodChem's board in October. According to the company, Mr Kovács will support the operation of the Company as a consultant going forward.
For the effective implementation of the future strategy of the Company, the BoD approved the decentralization of the operational management of the chemicals company. They established a new, 4- member Executive Management Board. The initial Executive Management Board shall consist of Mr. Kay Gugler, Mr. Tamás Purzsa, Dr. János Illéssy and Mr. Béla Varga, according to the statement.
We see the news as neutral and reiterate our Hold rating on BorsodChem and our fair value estimate of HUF 2,448 per share.