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Huntsman to sell Textiles Effects?

According to reports by Bloomberg citing unidentified sources at both companies, Huntsman is in advanced talks to sell its Singapore-based Textiles Effects division to private equity firm SK Capital Partners for a price under $100 billion. Neither party has commented.

The Huntsman board announced in late December 2021 that it had authorised management to conduct a strategic review of Textile Effects, including a possible sale and that this would begin in Q1 2022. No timetable was set down and Huntsman said that it might yet retain the division.

Huntsman sees off ‘activist’

Huntsman shareholders have voted to elect all ten of its director nominees to the board at their AGM, giving the management an important victory over ‘activist’ shareholder Starboard, which had been trying to steer the firm in a different direction. It can now continue to follow the strategy outlined at an Investor Day in November 2021, subject to final results.

Huntsman to exit Textile Effects?

The Huntsman board of directors has authorised management to conduct a strategic review of the Singapore-based Textile Effects division, including a possible sale. This will begin within Q1. No timeline has been set but the company said that “plans to move expeditiously”.

Textile Effects is expected to generate close to $100 million in adjusted EBITDA in 2021, recovering much of what was lost due to COVID-19. On this basis, said Peter R. Huntsman, chairman, president and CEO, “we believe now is the right time to explore options for Textile Effects”.

SK Capital buys more of Venator

New York-based SK Capital Partners has acquired most of Huntsman’s stake in TiO2 pigments and performance additives producer Venator Materials, which Huntsman span off in 2017. In all, it has bought a 40% stake or 42.5 million shares for about $100 million, including a 30-month option to buy the remaining 9.5 million at $2.15/share.

Huntsman exits surfactants

Huntsman Corporation has agreed to sell its chemical intermediates businesses, including surfactants and derivatitves of ethylene oxide and propylene oxide.
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