24 April 2012 11:58 [Source: ICIS news]
LONDON (ICIS)--Poland-based Ciech has received a concrete offer for its toluene di-isocyanate (TDI) business, Zachem, but is not ruling out the option of closing the subsidiary should no deal for a sale be achievable, the chemical group said on Tuesday.
The company is considering whether to invite the firm behind the offer to hold exclusive negotiations for the acquisition of Zachem or to continue talks with several other investors that might come foward with bids, it added.
However, Ciech conceded the offer was only around the lower range of its price expectations.
The bidder was also interested in Ciech’s polyurethane (PU) foams line, for which Zachem’s TDI was the key input, Ciech said.
The PU line was originally part of Zachem, but last June, Ciech turned it into a separate business unit.
“The Zachem TDI business, a key area of management’s focus and the main point on the restructuring list, is expected [by Ciech management] to show positive quarter on quarter dynamics in Q2,” Wood & Company investment bank said in a note to investors looking at the prospects for a divestment.
“While the prices of amine (the key TDI input) remained stable q-o-q [quarter on quarter], Ciech’s TDI prices are currently trending higher, according to management,” it added.
Zachem, located in Bydogoszcz, northern ?xml:namespace>
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections