Johnson Matthey (JMAT) shares dropped 17 per cent on Monday morning after it announced a 拢500mn cut to the sale price for its catalyst technologies business.
Buyer Honeywell will pay a reduced sticker price because of 鈥渞educed profitability from the supply of catalysts due to the challenging market environment鈥�, Johnson Matthey said. The deal is now worth 拢1.3bn on an enterprise value basis, down from 拢1.8bn.
Johnson Matthey now expects to return around 拢1bn of net proceeds to shareholders, comprising an 拢800mn special dividend, along with a share consolidation and a 拢200mn buyback.
This is down from 拢1.4bn under the previous sale agreement, reached in May.
Alongside the price cut, the two parties have extended the long stop date for the sale to 21 July 2026, from 21 February, with a possible one-month extension if the remaining antitrust approvals are still outstanding. The companies expect to complete the deal by the end of August.
On the operating side, the group said it remains on track to deliver operating profit growth at the top end of mid-single digits and higher free cash flow this year.
