19 November 2009 09:29 [Source: ICIS news]
TOKYO (ICIS news)--Mitsubishi Chemical Holdings Corp is to buy Mitsubishi Rayon for roughly yen (Y) 228bn ($2.55bn) in response to the current harsh business environment and intensifying international competition in its core chemicals business, the holding company for Mitsubishi Chemical said on Thursday.
Under the agreement, Mitsubishi Chemical would acquire all outstanding shares of Mitsubishi Rayon in a tender offer, with the offer price per share of Mitsubishi Rayon common stock at Y380, Mitsubishi Chemical said.
The tender offer was targeted to start at the beginning of February 2010, with planned completion by the end of March 2010, Mitsubishi Chemical said.
In the event that Mitsubishi Chemical would not be able to acquire all of the outstanding shares issued by Mitsubishi Rayon, the two companies planned to conduct a share exchange, Mitsubishi Chemical said.
Details of the effective exchange date and exchange ratio were to be announced, Mitsubishi Chemical added.
Mitsubishi Chemical's purchase of Mitsubishi Rayon would enable both companies to achieve an expansion in corporate scale and strengthen their competitiveness, Mitsubishi Chemical said.
With the acquisition of Mitsubishi Rayon, Mitsubishi Chemical said it aims to generate sales revenue of over Y4,000bn and operating profit of over Y400bn in 2015.
In addition, as a result of the integration, Mitsubishi Chemical would acquire a new core business in the form of Mitsubishi Rayon’s methyl methacrylate (MMA) operations, Mitsubishi Chemical said.
Acquiring Lucite was part of Mitsubishi Rayon’s strategy to achieve sales revenues of Y1,000bn and operating profit of Y100bn by 2018, according to Mitsubishi Chemical.
($1 = Y89.47)
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