Sibur will not relaunch plans for management buyout - CEO

15 June 2009 16:26  [Source: ICIS news]

LONDON (ICIS news)--Sibur does not intend to relaunch its previous plans for a management buyout, the Russian petrochemical producer said on Monday.

The company suspended its plans for a $5.4bn (€3.8bn) deal in September 2009 due to the financial crisis, and the idea was now “off the agenda”, said Sibur CEO Dmitry Konov.

“We saw no sense in doing it when we saw the markets getting much worse,” he said.

Raising leveraged finance would do damage to the company, he added.

Konov also ruled out the possibility of an initial public offering (IPO), saying it would not be possible under current market conditions.

Gazprombank, the banking subsidiary of gas giant Gazprom, controls a 75% interest in Sibur, while Gazprom's pension fund, Gazfond, owns the remaining 25%.

($1 = €0.71)

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