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PRW
Published: August 29, 2013 11:48 am ET
FRANKFURT, GERMANY — Ineos Group could be set to exercise an option to buy out Ludwigshafen, Germany-based BASF SE from the firms' Styrolution Group GmbH joint venture.
"I consider Ineos to be very interested. That has been voiced clearly," said Roberto Gualdoni, Styrolution's chief executive, during a media briefing.
The joint owners have agreed, he said, that any deal would value the company at a fixed multiple of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), although that multiple has not been revealed.
Frankfurt-based Styrolution reported sales of 6 billion euros last year (about $8 billion at current exchange rates) and there are clear signs that the company will improve on that figure, so it could benefit Ineos to make the purchase as soon as possible.
"The decision on a sale will be made depending on how much trust there is in my words. But I believe our credibility is quite high," Gualdoni added. "BASF has already said they want to exit, so that is just a matter of time."
According to media reports, Lyndhurst, England-based Ineos claimed not to have made any decision about exercising its purchase option. | |
