M&G intends to take more active role in Trinseo

Author: Al Greenwood

2020/02/07

HOUSTON (ICIS)--M&G Investment Management plans to take a more active role in Trinseo after it recently raised its stake in the company, the UK investment company said on Friday.

M&G recently bought more shares in Trinseo, prompting it to disclose its latest holdings to the US Securities and Exchange Commission (SEC). The company now owns 7.84m shares of Trinseo, which represents 20.1% of the outstanding shares of the company as of 12 November 2019.

M&G said it is "enthusiastic about the strategic direction" of the company. With proper board oversight, Trinseo's "existing management team will be capable of executing on the exciting opportunities available to the company".

While M&G expressed its confidence in the existing management, it noted the recent challenges that have emerged in Trinseo's business.

That said, M&G plans to hold talks with the company, its management, its board of directors and other stockholders about how Trinseo can "achieve its full potential". These talks could involve business, management, operations, assets, capitalisaion, financial conditions, strategic plans, governance, board composition and the future of the company.

As far as Trinseo's management, Frank Bozich became the CEO of Trinseo in 2019. He replaced Chris Pappas, who retired from the company.

During an earnings conference call earlier on Friday, Bozich said: "We look forward to these discussions and are always willing to consider the views of our shareholders."

M&G did not elaborate on Trinseo's recent challenges.

However, many of the company's products are used in the automotive industry, where sales have been falling because of weaker demand.

Styrene margins have also fallen.

Trinseo produces plastic compounds as well as styrene, polystyrene, acrylonitrile butadiene styrene (ABS), styrene butadiene rubber (SBR) and styrene butadiene latex.

Thumbnail image shows tyres which are made from SBR. Photo by Mood Board/REX/Shutterstock

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