Abu Dhabi's IPIC bids $2.3bn to acquire NOVA

23 February 2009 14:10  [Source: ICIS news]

NOVA Corunna site in CanadaLONDON (ICIS news)--The Abu Dhabi-based International Petroleum Investment Company (IPIC) has entered an agreement to acquire Canadian petrochemicals producer NOVA Chemicals for about $2.3bn (€1.8bn), NOVA said in a statement on Monday.

IPIC has offered $6/share, which represents a 348% premium of NOVA’s value on the New York Stock Exchange at Friday’s close.

NOVA said the deal was intended to enable the company to meet all its obligations to shareholders and includes a $250m credit backstop facility to maintain the company’s liquidity.

“This acquisition will provide enhanced balance sheet strength for NOVA Chemicals and facilitate NOVA Chemicals’ growth internationally,” said IPIC managing director Khadem Al Qubaisi.

Under the proposed agreement, NOVA would operate as an independent chemicals and plastics company, while continuing to invest it its operating facilities in Alberta and Ontario as well as its R&D centre in Calgary, NOVA said.

The board of NOVA has unanimously approved the deal and recommended it to shareholders.

($1 = €0.78)

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By: Mark Watts
+44 20 8652 3214

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