IPO, acquisition, JV buy-out among options considered for Styrolution

28 August 2013 15:00  [Source: ICIS news]

LONDON (ICIS)--Styrolution is considering options for its future ownership structure, including a potential initial public offering (IPO), the acquisition of BASF’s 50% stake in the company by joint venture partner INEOS, or the acquisition of all or part of the company by a third party, a company spokesperson confirmed on Wednesday.

The company, which was formed in 2011 out of the styrenics businesses of Germany-based chemicals major BASF and Switzerland-headquartered INEOS, is looking at those as the three key options for its future.

“[There are] three different options. There’s either [INEOS acquiring BASF’s stake], an IPO or some kind of private investor or another market player could acquire Styrolution,” the spokesperson added.

The process would be likely to proceed on different timescales, depending on the path chosen by the company and its owners.

BASF and INEOS’ joint venture agreement gives INEOS the right to acquire BASF’s 50% stake in Styrolution from 1 February 2014 onwards, while BASF has the option to sell its stake from October 2014.

Styrolution CEO Roberto Gualdoni has reportedly stated that INEOS is interested in exercising its option to acquire, but no decision on the matter has been taken, according to an INEOS spokesperson.

“INEOS have not made any decision on the option. The JV [joint venture] operates extremely well and there is no urgency to change,” he said.

Any IPO would likely take place further down the line, the Styrolution spokesperson added.

“It is still not confirmed that we would be going in that direction, but if we were ...  it takes preparation,” he said.

A 50:50 joint venture between BASF and INEOS, Styrolution produces styrene monomers (SM), polystyrene (PS), acrylonitrile butadiene styrene (ABS), styrene-butadiene block copolymers (SBC) and other styrene-based copolymers as well as copolymer blends.

By: Tom Brown
+44 208 652 3214

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