21 March 2018
DETAILS
Corpus Christi Polymers LLC
(“CC Polymers”),
a newly formed joint venture between
* Alpek, S.A.B. de C.V. (“Alpek”),
* Indorama Ventures Holdings LP (“Indorama”)
a subsidiary of Indorama Ventures public company limited, and
* Far Eastern Investment (Holding) Limited (“Far Eastern”),
has entered into an asset purchase agreement
with M&G USA Corp. and its affiliated debtors (“M&G”)
whereby CC Polymers will acquire
* the integrated PTA-PET plant currently under construction
in Corpus Christi, Texas (the “Corpus Christi Project”),
* certain M&G intellectual property, and
* a desalination/boiler plant providing water and steam
to the Corpus Christi Project.
The purchase agreement provides M&G
with a binding bid of $1.125 billion
in cash and other capital contributions.
The Corpus Christi Project is an integrated PTA-PET plant
currently under development that, when completed,
will have nominal capacity of
1.1 million and 1.3 million metric tons per year of PET and PTA,
respectively.
The plant is expected to be the largest single line
vertically integrated PTA-PET production facility in the world
and the largest PTA plant in the Americas.
Pursuant to the terms of the newly formed joint venture:
• The parties will provide resources to CC Polymers
to complete the project in the most efficient and cost effective way.
A timeline for project completion will be communicated at a later stage.
• Each of Alpek, Indorama, and Far Eastern
will have the right to
receive one-third of the capacity of PTA and PET
produced at the Corpus Christi Project upon completion.
Each party will independently procure its raw materials
and will independently sell and distribute
their corresponding PTA and PET.
The closing of the transaction is subject to conditions precedent
including approval by the bankruptcy court
and applicable governmental authorities.
PJT Partners is serving as financial advisor and
Weil, Gotshal & Manges LLP is serving as legal advisor
to Alpek.
HSBC is serving as financial advisor and
Lowenstein Sandler LLP is serving as legal advisor
to Indorama.
Morgan Stanley is serving as financial advisor and
Duane Morris LLP is serving as legal advisor
to Far Eastern.
For further information:
Hernán F. Lozano
Investor Relations Officer
+52 (81) 8748-1146
hlozano@alpek.com
For further information:
Richard Jones
Tel: +662.661.6661 ext. 680
richard.j@indorama.net
Naweensuda Krabuanrat
Tel: +662.661.6661 ext. 247
naweensuda.k@indorama.net
For further information:
Humphrey Cheng
Spokesperson
Tel: +886-2-27338000#8969
csostaff@feg.com.tw
David Wang
Acting Spokesperson
Tel: +886-2-27338000#8735
ccwang@feg.com.tw
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