13 December 2012 14:19 [Source: ICIS news]
HOUSTON (ICIS)--Phillips 66 plans to form a tax-advantaged master limited partnership (MLP), the US-based refining and chemicals firm said on Thursday.
The company expects to sell a minority interest in the MLP in an initial public offering (IPO) in the second half of 2013. The IPO could raise about $300m-400m (€228m-304m), it added.
“We expect to use the master limited partnership as an efficient vehicle to fund growth investments in the transportation and midstream sectors,” said Phillips 66 CEO Greg Garland.
“We believe the proposed MLP will enable us to enhance value for our shareholders and increase the transparency of our business,” he added.
Phillips 66 participates in petrochemical markets through its stake in the Chevron Phillips Chemical (CPChem) joint venture with US-based Chevron.
Phillips 66 added that CPChem plans $1.1bn of investment next year, including several growth projects planned or under construction, such as its US Gulf Coast petrochemicals complex and a 1-hexene plant.
($1 = €0.76)
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