Canada NOVA presents stable outlook for takeover by IPIC

14 April 2009 21:34  [Source: ICIS news]

HOUSTON (ICIS news)--NOVA Chemical’s incoming and outgoing chief executives presented an outlook of stability and opportunity on Tuesday after shareholders approved the company’s $2.3bn (€1.7bn) acquisition by Abu Dhabi’s International Petroleum Investment Co (IPIC).

“It is IPIC’s intent to continue operating in the current mode and with the same management team,” said Jeff Lipton, who is being replaced as chief executive by Chris Pappas.

“The transaction couldn’t have come at a better time,” Pappas said. “With the prospect of the IPIC transaction, we can now look strategically and invest in growth for high returns.”

He said key customers had responded positively to the deal, and that NOVA stood to gain sales as a result.

Pappas said industry conditions are likely to be challenging in the short term, but recovery could come more rapidly for the ethylene/polyethylene (PE) business compared with other commodities.

Unlike previous recessions, inventories have remained low throughout the supply chain, he said.

NOVA will continue restructuring its performance styrenics business as announced in the fourth quarter, Pappas said.

A 98% majority of shareholder votes were cast in favour of the IPIC acquisition, which is expected to close in the second quarter, pending court and regulatory approvals.

Over 1,100 shareholders attended the NOVA meeting, either in person or by proxy, representing nearly 67% of the common shares entitled to be voted.

($1 = €0.75)

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By: David Barry
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