17 December 2013
Details
Solvay
announced today
it has signed a binding agreement with Braskem,
Brazil's leading PVC producer,
to sell its 70.59 % stake in Solvay Indupa.
This transaction comes after
Solvay classified Solvay Indupa as
an "Asset held for sale"
Completion of the transaction is subject to
the customary closing conditions, including antitrust approval.
The transaction is based on a total enterprise value of
$210 million (EUR211 million).
The divestment is expected to result in an
estimated non-cash net loss of about EUR120 million
for Solvay Group share.
Solvay,
Jacques Van Rijckevorse,
Member of Solvay's executive committee
- This divestment is part of Solvay's strategic portfolio managment.
It will reduce the Group's exposure
* to the economic cycle and
* to energy-intensive business, allowing Solvay to achieve
+ higher growth,
+ higher returns and
+ lower capital intensity.
- As part of Braskem, Solvay Indupa will enjoy ready access
to raw material and energy which will enhance its position
in a competitive and growing market.
- This will all Solvay Indupa to develop its acitivities sustainably
in Latin America for the benefit of
both its customers and employees.
About Solvay Indupa
- Created in 1948, Solvay Indupa is South America's
second largest PVC producer and
fourth largest caustic soda producer.
- With 936 employees and
two production sites in Argentina and Brazil,
Solvay Indupa reported net sales of
EUR 542 million in 2012.
- It is listed on the Buenos Aires Stock Exchange.
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