Solvay Explores Separation Into Two Publicly Listed Companies
15 March 2022 - 06:14PM
Dow Jones News
By Ed Frankl
Solvay SA said Tuesday that it is exploring a separation into
two publicly listed companies.
The Belgian chemical company said it is reviewing plans to
divide its chemicals and materials segments into two entities that
for now are called EssentialCo and SpecialtyCo, respectively.
EssentialCo would comprise Solvay's soda ash, peroxides, silica
and coatis businesses, while SpecialtyCo would include its
specialty polymers, composites and the majority of its solutions
segment, the company said.
EssentialCo businesses in 2021 generated around 4.1 billion
euros ($4.49 billion) in net sales, while SpecialtyCo companies
generated approximately EUR6.0 billion in sales, Solvay said.
"The plan to separate into two leading companies represents a
pivotal moment in our journey to transform and simplify Solvay,"
Chief Executive Ilham Kadri said.
The separation would be undertaken by through a partial demerger
of Solvay in which the specialty business will be spun off to
SpecialtyCo, the Brussels-based company said.
Shareholders would receive shares in SpecialtyCo pro rata to
their shareholding in Solvay, the company said.
The composition of boards and management teams would be provided
at a later date, as would the formal naming of each company, Solvay
said.
The separation would be subject to market conditions, approval
of the board and shareholder approval, it said.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
March 15, 2022 02:59 ET (06:59 GMT)
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