Huntsman Sells Venator Shares to SK Capital

03.09.2020 - Huntsman has agreed to sell about 42.5 million shares in Venator Materials – representing just below 40% of Venator’s outstanding shares – to private equity group SK Capital Partners for $100 million cash. The deal includes a 30-month option at $2.15/share for the remaining 9.5 million shares that Huntsman owns.

The transaction is expected to close by the end of this year. Titanium dioxide pigments and performance additives producer Venator Materials was spun off by Huntsman in August 2017.

Commenting on the deal, Venator president and CEO Simon Turner said: "I am excited to welcome SK Capital as a major investor in Venator. They have a successful track record of investing in the chemical industry with a focus on long term growth. We appreciate this vote of confidence by Barry Siadat and the SK Capital team in the opportunities ahead for Venator and expected value creation for our shareholders."   

Huntsman chairman, president and CEO Peter Huntsman said proceeds from the sale will further bolster its balance sheet and enhance flexibility for further growth.

Together with estimated cash tax savings of approximately $150 million – anticipated by offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of its chemical intermediates and surfactants businesses – Huntsman expects to secure an aggregate total benefit of approximately $250 million in cash near year end.

The company sold its intermediates and surfactants business in January 2020 to Indorama Ventures for $2 billion, representing the Thai company’s biggest acquisition to date.


Author: Elaine Burridge, Freelance Journalist