Biome Technologies (Southampton / UK; www.biometechnologies.com) is seeking to sell its 50% stake in German-based Biotec Holding GmbH (Emmerich) to its joint venture partner Sphere (SPH) for a total cash value of GBP 5.2m. The sale, which includes an outstanding shareholder loan, will allow Biome to focus on developing its high-margin products, the company said.

Biotec produces a range of bioplastic resins under the name “Bioplast.” Principal customers are Biome and SPH. The company currently has compounding capacity of 20,000 t/y but Biome’s filing document says full output capability has never been reached and that utilisation rates now total only 50%. What’s more, the facilities “have never been used in the scale-up of production of novel materials originating from Biome’s own development activities.”

John Standen, chairman of Biome’s board, said the divestment “will allow our bioplastics division to work exclusively on developing and commercialising wholly-owned intellectual property.” He added that the board believes it is an appropriate time to divest its stake given the weak and uncertain market segments serviced by Biotec and that the company’s production facilities will become increasingly less relevant as Biome pursues development of products with higher levels of functionality, which are likely to require different production technologies.

Since 2007, Biotec has been embroiled in patent disputes with Italian bioplastics giant Novamont (Novara; www.novamont.com) in several European countries. Biome’s filing says that a number of disputes were initially settled in Biotec’s favour but that major disputes are still pending. It estimates Biotec’s court costs to date at EUR 4m.