Not for distribution or release in or into the United States of America (or the U.S. persons), Australia, Canada or Japan, or in any other jurisdiction in which offers or sales of securities would be prohibited by applicable law.
- INEOS Capital to bring together INEOS Norway and INEOS ChlorVinyls to create the Kerling group as a European market leader in PVC and chlor-alkali;
- Kerling plc announces launch of a €785 million senior secured notes offering.
INEOS Capital has today announced its intention to bring together its key polyvinyl chloride (PVC) and chlor-alkali businesses under a single new financing structure. The businesses, which have effectively been operating together since 2008, comprise INEOS Norway SPV Limited, a subsidiary of INEOS Limited and its subsidiaries (“INEOS Norway”) and various companies owned indirectly by INEOS Group Limited, operated together as the INEOS ChlorVinyls business (“INEOS ChlorVinyls”).
In connection with the transaction, Kerling plc, the renamed parent of INEOS Norway (which also holds INEOS Enterprises Limited) will acquire INEOS ChlorVinyls from relevant subsidiaries of INEOS Group Limited to form the Kerling group.
Kerling plc has today launched an offering of senior secured notes due 2017 in an aggregate principal amount of €785 million (the “Offering”). Kerling plc intends to use the net proceeds from the Offering to finance the acquisition of INEOS ChlorVinyls, to refinance indebtedness incurred at the time of the acquisition of Norsk Hydro ASA’s polymer business in 2008 and to refinance indebtedness of INEOS ChlorVinyls (including the redemption of the €160 million aggregate principal amount senior notes issued by INEOS Vinyls Finance plc).
The completion of the acquisition of INEOS ChlorVinyls and the formation of the combined Kerling group is conditional on the closing of the Offering.
Upon the completion of the transaction, the combined Kerling group will become Europe’s leading producer of PVC and caustic soda. The combined business will be one of the lowest cost producers of PVC, benefiting from vertical integration, access to low cost feed stocks and efficient and well-invested manufacturing facilities. The businesses that are to be combined are currently trading profitably and producing positive cash flows in bottom-of-cycle conditions.
Further information:
Richard Longden: +44 (0) 7710371998
Note to editors:
In the last twelve months to 30 September 2009, the combined business produced combined revenues of €1.8 billion.