Huntsman completes sale of European commodities business
29 Dec '06
2 min read
Peter R. Huntsman, President and CEO of Huntsman Corporation announced that Huntsman has completed the sale of its UK-based European commodity chemicals business to Saudi Basic Industries Corporation (SABIC).
SABIC acquired the business for a combination of cash plus the payment of pension liabilities. The transaction provides that Huntsman receive $685 million in cash (subject to post closing adjustments) plus the assumption by SABIC of $126 million in net pension liabilities, resulting in a total divestment value to Huntsman Corporation of $810 million.
In making the announcement Mr. Huntsman said, "This transaction marks a significant milestone in our previously stated strategy to create additional shareholder value."
"Through positive operating cash flows, funds raised in our IPO, and the proceeds from this transaction and the previously completed sale of our U.S. Butadiene and MTBE business, the company has generated funds sufficient to reduce our net debt by $2.6 billion over the past 2 years."
"We now derive over 80 percent of our sales from our differentiated chemical products, which are significantly less cyclical, less energy dependent, and higher margin businesses than commodity chemicals."
Mr. Huntsman added, "We continue to make progress towards the sale of our North American Polymers and Base Chemicals businesses. Having received greater than anticipated interest from potential buyers, we now plan on making an announcement in the next few weeks."
marketing@alchempro.com
