Solvay Says Units Will Target Investment-Grade Ratings After Planned Split
16 June 2023 - 4:06PM
Dow Jones News
By Adria Calatayud
Solvay on Friday set out the capital structures of its two units
ahead of a planned split and said both will pursue financial
policies consistent with investment-grade ratings.
The Belgian chemicals company last year said it would split
itself into two publicly traded companies--EssentialCo, which would
house its mono-technology businesses currently part of its
chemicals and special chemicals businesses, and SpecialtyCo,
comprising its materials segment and the majority of its solutions
segment.
Solvay said EssentialCo had underlying earnings before interest,
taxes, depreciation and amortization of 1.3 billion euros ($1.42
billion) in 2022, while SpecialtyCo's underlying Ebitda was EUR1.9
billion. EssentialCo's underlying net debt at the and of 2023 is
projected to be EUR1.9 billion, while SpecialtyCo's underlying net
debt is expected to be EUR1.6 billion, the company said.
Both companies will have other debts including pension and
environmental liabilities, Solvay said.
Solvay said 60% of its current dividend will be apportioned to
EssentialCo, which is expected to maintain its policy of stable or
increasing dividends, with SpecialtyCo assuming the remaining 40%
dividend. SpecialtyCo's dividend policy will seek to enable it to
invest in growth while reducing debt over time, Solvay said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
June 16, 2023 01:51 ET (05:51 GMT)
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