InterviewLucite to restart IPO process - CEO

11 April 2008 14:26  [Source: ICIS news]

By Will Beacham

 

LONDON (ICIS news)--MMA producer Lucite is planning to restart moves towards an initial public offering (IPO) or sale during 2009, it's CEO Ian Lambert said on Friday.

 

The privately-held group, whose biggest shareholder is UK private-equity group Charterhouse, says it will wait until its new Alpha technology MMA plant in Singapore  - scheduled for start-up in the fourth quarter of this year – has proved itself before beginning the process.

 

UK-headquartered Lucite attempted an IPO or sale in 2006, but the process stalled because shareholders believed the offers on the table undervalued the business.

 

Lambert told ICIS news that during the auction process in 2006, bidders “attributed no value to Alpha”.

 

He added: “After the start-up in Singapore, this would be a natural exit for Charterhouse. This would have to be in 2009 rather than 2008 so that there would not just be token operation, but demonstrable operation as intended.”

 

Lambert dismissed as “hot air” concerns that the current turmoil in the financial markets could have a long term or permanent impact on merger and acquisition activity.

 

“The IPO world will improve dramatically once the situation stabilises - it’s in a vortex at the moment,” he said.

 

Lucite’s 120,000 tonne/year project in Singapore is the world’s first to use Alpha technology, which offers 40% savings in construction costs, according to the company.

 

Initially developed by ICI, the process uses ethylene, carbon monoxide and methanol as raw materials instead of conventional materials such as acetone, hydrocyanic acid and isobutylene.

 

Charterhouse owns around 85% of Lucite, UK chemical group INEOS owns around 12% and management the remainder.

 

At the time of its first attempted IPO, Lucite was estimated to be worth $2.5bn (€1.6bn), including debt. It was expected to generate interest from chemical companies including Dow, Rohm & Haas, BASF, Asahi Kasei and Mitsubishi Rayon.

 

($1 = €0.64)

By: Will Beacham
+44 20 8652 3214

< previous article(ICIS Podcast: Chemical News Central 2 November 2009)

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