Huntsman to Add Textile Effects to TiO2 Split
As it prepares to separate from its TiO2 business by the first quarter of 2017, Huntsman said it is planning to include its textile-effects business to the spin-off package to make it more attractive to investors. Earnings from production of textile chemicals, dyes and inks are more stable than the white pigment and should provide a buffer when TiO2 is in a trough, CEO Peter Huntsman said in a recent media statement.
The US chemical producer has been seeking a solution outside the company for the TiO2 business off the activities since buying the pigments and additives activities of compatriot Rockwood in late 2014. A spin-off could give the new company the freedom to make capital expenditures and pursue mergers and acquisitions, the CEO said.
Huntsman said he believes the cyclical nature of the TiO2 market has led investors to undervalue its shares, so that a separation will allow equity markets to “value our businesses more fairly.”