Huntsman Corporation announced on 5 January that it has completed the sale of its chemical intermediates businesses, which includes propylene oxide (PO)/methyl tertiary butyl ether (MTBE), and its surfactants businesses to Indorama Ventures in a transaction valued at approximately USD2 billion, comprising a cash purchase price of approximately USD1.93 billion, which includes estimated adjustments to the purchase price for working capital, plus the transfer of up to approximately USD76 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 USD1.6 billion.
“This transformational transaction significantly reduces our capital-intensive upstream asset base, further bolsters our already strong balance sheet and allows us to further invest in and grow our downstream businesses,” said Peter Huntsman, chairman, president and CEO of Huntsman Corporation.
:We are committed to retaining our investment grade balance sheet and our continued balanced approach to capital allocation. This transaction greatly expands our flexibility and opportunity for select strategic and accretive acquisitions, as well as for expansions in our core downstream global footprint, and for continued opportunistic repurchases of our shares. We 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.”