Huntsman Corporation has completed the sale of its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses to Indorama Ventures in a transaction valued at approximately USD 2 billion, comprising a cash purchase price of approximately USD 1.93 billion, which includes estimated adjustments to the purchase price for working capital, plus the transfer of up to approximately USD 76 million in net underfunded pension and other post-employment benefit liabilities. The final purchase price is subject to customary post-closing adjustments. The net cash proceeds are expected to be just under USD 1.6 billion.
Strengthening Downstream Businesses
The transformational transaction significantly reduces Huntsman’s capital-intensive upstream asset base, further bolsters the strong balance sheet and allows the company to further invest in and grow downstream businesses. The company is committed to retain investment grade balance sheet and their continued balanced approach to capital allocation. The transaction expands company’s flexibility and opportunity for select strategic and accretive acquisitions, as well as for expansions in the core downstream global footprint, and for continued opportunistic repurchases of our shares. Huntsman remain disciplined and focused on the creation of long-term shareholder value.
“This is a great transaction for both Huntsman and Indorama. I am pleased to see that so many of our outstanding associates are transitioning to a company that has values like Huntsman. Led by Aloke Lohia, Indorama is a family-run business that understands the value of quality people. I look forward to an ongoing relationship with Indorama for years to come.” said Peter Huntsman, chairman, president and chief executive officer.
Source: Huntsman