Definitive strategic partnership agreements with Michelin delayed again
Further Delays at Enviro Michelin
All parts of the definitive agreements between Scandinavian Enviro Systems and Michelin concerning the announced strategic partnership have not yet been fully negotiated. Accordingly, Enviro will not be convening an Extraordinary General Meeting (EGM) for approval of the agreements in January as previously announced. Both Enviro and Michelin expect that the agreements will be fully negotiated in the near future. As previously communicated, the agreements must first be approved by Enviro’s owners at an EGM before they can enter into force. Notice of the EGM will be published separately.
In December 2020, Enviro announced that the company and Michelin had agreed on the key principles for a strategic partnership. The key principles communicated at that time covered the terms for the establishment of a first jointly owned recycling plant and a license agreement regulating the terms of use of Enviro’s recycling technology and subsequent compensation. Since December, the parties have continued to negotiate the definitive agreements that will form the basis for the strategic partnership. The ambition was to complete the negotiations so that Enviro’s Board of Directors could convene an EGM in January, which was also communicated by the company.
Both Enviro and Michelin want to emphasise that the delay will not affect the plans for a strategic partnership.
“Both parties have been working diligently on finalising the formal documents to conclude the envisioned Strategic Partnership Agreement for which we reached a principal agreement in December. The Covid-19 context is not helping us as physical meetings have been impossible to organise. We are nevertheless confident we will be able to conclude our partnership in a formalised manner shortly,” said Sander Vermeulen, Vice President Marketing & Business Development, Strategy & New Businesses High-Tech Materials at Michelin and member of the board of Scandinavian Enviro Systems.
“There are many pieces that must fall into place before everything is ready, and it has unfortunately taken more time to complete our negotiations than we previously estimated. However, both parties remain equally convinced of the major advantages of our planned strategic partnership and are thus equally as determined to get the agreements into place,” says Thomas Sörensson, CEO Enviro.
Before the definitive strategic partnership agreements can enter into force, they must be approved by Enviro’s shareholders at an EGM. The reason is that Michelin is deemed a related party by virtue of its ownership in the company, and a related-party transaction requires the approval of shareholders at a General Meeting. Immediately following the signing of the definitive agreements, Enviro’s Board will hold an extra board meeting to decide to convene an EGM to gain approval for the agreements. Notice of the EGM will be sent out separately.
