Solvay Sells Vinythai Stake to Asahi Glass
Solvay is exiting its Asian PVC activities after agreeing to sell its controlling 58.77% stake in Thai subsidiary Vinythai to Japan’s Asahi Glass. The Tokyo-headquartered group is reported to be paying 33.5 billion yen for the stake, and the transaction is expected to close in the first half of 2017, subject to the usual closing conditions and antitrust clearance.
Asahi Glass said the southeast Asian caustic and PVC markets are projected to grow at around 5% per year, with 70% of demand coming from Indonesia, Thailand and Vietnam. The Vinythai acquisition will give it a production base in Thailand, adding to existing facilities in Indonesia and Vietnam. The Japanese group said it has been working successively to capture the region’s growing demand and increase its competitiveness.
The deal follows Solvay’s divestment of its European PVC business and the upcoming sale of its Brazilian activities. Vincent de Cuyper, member of Solvay’s executive committee, said the transactions were a significant milestone in the group’s transformation towards a multi-specialty chemical company.
The Brussels-based firm this month obtained clearance from the Brazilian antitrust authority CADE for the sale of its 70.59% stake in Solvay Indupa to Unipar Carbocloro. The transaction, which was announced in May and is based on a total enterprise value of $202.2 million, will complete in the coming weeks.
Separately, Solvay has reached agreement to sell its cellulose acetate tow business –Acetow – to private equity funds managed by Blackstone. The transaction is based on an enterprise value of around €1 billion and Solvay said net proceeds will go towards reducing its debt.
The Acetow business, which makes the material used in cigarette filters as well as some textile and plastic packaging products, was initially put under review by Solvay in late 2014. The sale is anticipated to complete in the first half of 2017, subject to customary conditions and antitrust approval.
Private equity firm Platinum Equity was also reported to have been interested in Acetow.