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SK Capital completes purchase of 40% Venator stake from Huntsman

December 25/2020

MOSCOW (MRC) -- SK Capital Partners has completed the acquisition of a 39.75% stake, roughly 42.4 million shares, in titanium dioxide maker Venator from Huntsman for roughly USD100 million, according to Chemweek.

The deal includes a 30-month option for the purchase of Huntsmans remaining approximate 9.5 million shares by SK at US2.15/share. Huntsman spun off Venator in a 2017 initial public offering.

"We are excited to engage with (SK founder) Barry Siadat and the SK Capital team, who have a strong reputation within the chemical industry for supporting long term growth and innovation," said Simon Turner, president and CEO of Venator.

"Our business is poised for increased shareholder value creation as demand for our world class functional and specialty products continues to strengthen." Venator said it remains "well positioned to deliver the full USD55 million in EBITDA improvement from our 2020 business improvement program over the next two years. We look forward to implementing additional steps to strengthen our business and further unlock shareholder value.

SK said in a regulatory filing 23 December that it intends to "engage in discussions with management or the board of directors of (Venator) about its business, operations, strategy, plans, and prospects, from time to time." Discussions may concern "any extraordinary corporate transaction, a sale or transfer of a material amount of assets, a change in the board of directors or management, a material change in the capitalization, other material changes in the companys business or corporate structure, or similar actions."

Huntsman said that the sale will provide cash tax savings of approximately USD150 million from the offset of a capital loss on the sale of Venator shares against the capital gain realized on the sale of its chemical intermediates and surfactants businesses in early January. The company said the Venator sale will secure a total related benefit of approximately USD250 million in cash this year.

As MRC reported earlier, Nanjing Jinling Huntsman, a joint venture between Huntsman and Sinopec Jinling, planned to shut its propylene oxide plant in Nanjing (Nanjing, Jiangsu Province, China) on November 1 for scheduled maintenance. This plant with a capacity of 240,000 tonnes/year of propylene oxide will be closed until approximately 25 November.

Propylene is the main feedstock for the production of polypropylene (PP).

According to MRC's DataScope report, PP imports into Russia increased by 21% year on year to about 202,000 tonnes in the first eleven months of 2020. Propylene homopolymer (homopolymer PP) accounted for the main increase in imports.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately USD7 billion. The company's chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. The company operates more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions.


mrcplast.com
Author:Margaret Volkova
Tags:PP, homopolymer PP, propylene, petrochemistry, Huntsman, Sinopec, SK Corporation, China, Russia, USA, South Korea.
Category:General News
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