Friday, July 16, 2010

Correction: Honam to buy 73pc of Titan Chem - Purchase price at RM2.35

Correction: Purchase price is RM2.35 per share. 73% stake will cost RM2.94 billion as reported in press release by RHB. The whole takeover will cost RM4 billion as reported by Bloomberg.

For RHB press release, click here.

Source: Business Times

Honam Petrochemical Corp, South Korea’s second-largest ethylene maker, agreed to pay 1.5 trillion won (US$1.25 billion) to buy Malaysia’s Titan Chemicals Corp. in a push to increase revenue from overseas markets. The Seoul-based maker of the chemical used in plastics and synthetic fibers has signed an agreement to acquire a 37.3 per cent stake in Titan from Chao Group and a 35.3 per cent holding from Permodalan National Bhd, Honam said in an e-mailed statement today.

It will make an unconditional takeover offer to Titan’s remaining shareholders. Titan is Malaysia’s biggest producer of olefins and polyolefins, used in making plastic parts in appliances and automobiles, and reported sales of US$1.64 billion last year.

Honam expects the acquisition to strengthen its presence in Southeast Asia, China, the Middle East and Central Asia, and increase its revenue to 12 trillion won this year, according to the statement. “This is a very exciting opportunity in extending the reach in global markets through strengthening overseas cross- supply of products,” Honam said.

Shares of Honam rose 5.7 per cent to 157,000 won in Seoul trading as of 1.19 pm local time, while the benchmark Kospi index dropped 0.5 per cent. Titan shares were suspended in Kuala Lumpur today. - Bloomberg

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