Sector News

Air Products details $1.4-billion bid for Yingde

January 23, 2017
Chemical Value Chain

Air Products on Friday released some terms of its proposal to acquire Yingde Gases Group, after initially confirming its interest in an acquisition on 9 January.

In the proposal letter—which does not constitute a definitive offer—Air Products stated a preliminary offer of HK$5.50/share for Yingde, representing a premium of approximately 92% to the company’s closing price on 23 December 2016, the last day of trading before the letter’s delivery. A transaction at this price values Yingde’s equity at approximately HK$10.4 billion (US$1.4 billion). Yingde reports total debt of about $1.3 billion as of 30 June, yielding an enterprise value of $2.7 billion. Air Products also says it could raise the offer price to HK$6/share if permitted to conduct a customary due diligence on Yingde.

Air Products says certain conditions, such “satisfactory” due diligence results, must be met before it will make a firm offer. Air Products also says it plans to finance the acquisition with “existing cash and internal financial resources.”

Yingde Gases says it is the largest industrial gas player in China, with 2015 revenue of 7.9 billion renminbi ($1.2 billion). As of 30 June 2016, Yingde had 69 gas supply facilities in operation and 11 facilities under development. Last year, Air Products’ revenue in China was about $1 billion, or about 11% market share, while Yingde’s China market share is approximately 14%.

By Jing Chen

Source: Chemical Week

comments closed

Related News

February 4, 2023

Eastman acquires performance films company Ai-Red Technology

Chemical Value Chain

Eastman Chemical Co. (Kingsport, Tenn.) announced it has acquired Ai-Red Technology (Dalian) Co., Ltd., a manufacturer and supplier of paint protection and window film for auto and architectural markets in the Asia Pacific region.

February 4, 2023

BASF and StePac partner on chemical recycling MAP packs to fight food waste

Chemical Value Chain

BASF and Israeli packager StePac have joined forces to create the “next generation” of fresh produce packaging. BASF will provide StePac with greater flexibility to advance contact-sensitive packaging formats to a higher sustainability standard by supplying StePac with Ultramid Ccycled – a chemically recycled polyamide 6.

February 4, 2023

TotalEnergies and Intraplás partner on food-grade renewable biopolymer production

Chemical Value Chain

TotalEnergies’ biorefinery in La Mède, France, allows direct access to renewable feedstock for its drop-in RE:newable polymer range derived from bio-based products. The company claims these polymers retain virgin-like properties.

How can we help you?

We're easy to reach