Scapa CEO agrees to stay on as ConvaTec spat heats up

Healthcare and industrials company Scapa on Monday said chief executive Heejae Chae had agreed to reverse his decision to step down from the group.

Chae opted to remain with Scapa which was continuing to prepare its response and pursue "all appropriate rights and remedies" against embattled FTSE 250 drugmaker ConvaTec over a supply agreement.

Scapa also said its estimated exposure to revenue and trading profit from the dispute to be in the vicinity of £28m and £13m, respectively.

Scapa said ConvaTec did not have grounds to terminate the final three years of the five-year deal worth a minimum of roughly $30m in revenue per year.

Chairman Larry Pentz: "The board is delighted that Heejae has agreed to continue as group chief executive.

"The board remains committed to its strategy and believes it has the right capabilities and management to fully deliver its growth priorities and we will not be distracted by the recent claims published by ConvaTec, which we will robustly contest."

As of 0840 BST, Scapa shares had climbed 10.64% to 181p.