Once the proposed agreement is approved by all parties, the company said, all pending arbitration and civil proceedings between Semperit, Sri Trang and Siam Sempermed will be settled by mutual consent.
Under the proposed pact, Semperit will become sole owner of Sempermed USA, a joint venture glove distribution company in the US, while Sri Trang will assume control of the joint glove production plant in Thailand. Sempermed USA serves the North American region. All Sempermed brands will continue to be owned solely by Semperit.
In addition, Semperit will take over Sempermed glove joint ventures in Singapore, China and Brazil as well as gain a majority interest in Formtech, a Malaysian producer of ceramic moulds used in the production of gloves.
Semperit's Semperform business also will assume full ownership of a joint venture in China.
One joint venture – Semperflex Asia, a producer of hydraulic hose based in Thailand – will continue to be operated by both companies. Semperit will own 50% of the operation while Sri Trang and some partners will own the other half.
However, the spokeswoman said Vienna-headquartered Semperit will hold an option to purchase the remaining 50% of the Thailand venture for about $60 million (€56 million). That option runs from 2019 through 2021, she said.
The spokeswoman said the planned transactions are subject to the approval of the firm's supervisory board, passage of a corresponding resolution at the extraordinary general meeting of Thailand-based Sri Trang as well as closing conditions.
"Semperit would have wanted to continue the joint venture Siam Sempermed," according to Veit Sorger, chairman of the firm's supervisory board. "However, due to the experiences with the joint venture during the past years, the agreement reached now is the right step for Semperit."
He added that Semperit "would like to successfully continue the reduced cooperation (between the two companies) in the Semperflex segment."