Honam Petrochemical completes acquisition of Titan Chemicals

09 November 2010 11:55  [Source: ICIS news]

SINGAPORE (ICIS)--South Korea-based Honam Petrochemical has completed the ringgit (M$) 2.94bn ($951.4m, €682.1m) acquisition of its 72.32% stake in southeast Asian polymer producer Titan Chemicals, that latter said on Tuesday.

Honam Petrochemical's stake represents 1.25bn shares of Titan Chemicals priced at M$2.35 each, according to a filing with the Malaysian stock exchange, Bursa Malaysia.

In the filing, Titan Chemicals said that in line with the completion of the acquisition, the company’s executive chairman, James Chao, and managing director, Warren William Wilder, have resigned from their posts with immediate effect.

Titan said that Chong BumShick was appointed as non-executive chairman, while Lee HunKi would take over the post of group managing dfirector and CEO of the company.

Honam Petrochemical, which is part of the South Korean conglomerate Lotte Group, had tendered an offer of M$2.35/share for the remaining shares of Titan it does not own, in line with its intention to delist Titan from Bursa Malaysia.

Honam produces synthetic resins, basic petrochemicals, basic chemicals and performance polymers and has an ethylene capacity of 1.75m tonnes/year.

Honam has a 750,000 tonne/year cracker at Yeosu and a 1m tonne/year cracker at Daesan.

Titan is an integrated olefins and polyolefins producer. It operates its 285,000 tonne/year No 1 cracker and 435,000 tonne/year No 2 cracker at Pasir Gudang, Malaysia.

($1 = M$3.09/€1 = M$4.31)

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By: Pearl Bantillo
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