Huntsman Corporation has entered into a definitive agreement with funds advised by SK Capital Partners, LP to sell approximately 42.5 million of Venator Materials PLC shares for cash purchase price of approximately 100 million USD, including a 30-month option for the sale of the remaining approximate 9.5 million shares it holds at 2.15 USD per share. The transaction is subject to regulatory approvals and is expected to close near end of 2020.
Enhancing Company’s Flexibility for Growth
The company estimates cash tax savings of approximately 150 million USD by offsetting the capital loss on the sale of Venator shares against the capital gain on the sale of the chemical intermediates and surfactants businesses, Huntsman expect to secure an aggregate total benefit of approximately 250 million USD in cash near 2020 year end.
Peter Huntsman, Chairman, President and chief executive officer, further commented, "
I am pleased to have reached an agreement to sell our remaining interest in Venator to SK Capital. We enjoy an ongoing relationship with SK Capital and their co-founder Barry Siadat. They are a great owner and operator of businesses and we are pleased for them to acquire Huntsman's stake in Venator, a world class functional and specialty TiO2 business. The proceeds to be received will further bolster our balance sheet and only enhance our flexibility for further growth."
About Huntsman
Huntsman Corporation is a global manufacturer and marketer of differentiated and specialty chemicals. The company’s chemical products serve a broad and diverse range of consumers and industrial end markets.
Source: Huntsman