Sector News

Borealis listing is still an option, but not yet: CEO

April 9, 2015
Chemical Value Chain
(Reuters) – A stock market debut for Austrian plastics and fertilizer maker Borealis [BESGR.UL] is still on the table but no concrete talks have taken place yet, Chief Executive Mark Garrett told Reuters on Wednesday.
 
An initial public offering (IPO) has been in the offing since 2005, when Austrian energy company OMV (OMVV.VI), which owns 36 percent of the group, and majority owner Abu Dhabi’s sovereign wealth fund IPIC took over Borealis.
 
But an IPO would have to wait at least until new OMV Chief Executive Rainer Seele has resolved the restructuring of OMV’s refining and marketing business and found a new boss for exploration and production, which would probably take at least 18 months, Garret said.
 
“There is a lot of stuff to be done over there,” he said.
 
“What could be more likely…and I think that’s been a standing statement from both OMV and IPIC – about the potential in the future (is) that there could be an IPO,” he added
 
Garrett said he would prefer Borealis to remain private, not least as it raked in a net profit of 571 million euros ($619.76 million) in 2014 and was not strapped for cash to make investments and acquisitions.
 
“We’re searching for opportunities. We’re generating a lot of cash, so we don’t need to raise any capital, we need to find good opportunities to allocate that capital,” Garrett said.
 
Borealis – which makes plastic pellets for highly specialized products such as power cables, medical supplies and water or gas pipes – is looking at Asia as a growth market for its pellet production and North America for access to gas feedstock.
 
Central and eastern Europe’s agriculture business could be another growth market for Borealis’s fertilizer section, he said, adding the company is focusing on making an annual net profit of between 500 million euros and 1 billion euros.
 
($1 = 0.9213 euros)
 
By Shadia Nasralla and Alexandra Schwarz-Goerlich (Editing by Susan Thomas)
 

Related News

February 28, 2021

Borealis to invest in new RTO to reduce CO2 emissions at Porvoo polyolefins plant

Chemical Value Chain

This equipment will significantly lower the site’s CO2 emissions, reduce flaring and save around 60 gigawatt hours (GWh) energy each year. Project kick-off is in February 2021, with completion planned for 2023.

February 28, 2021

Grace to acquire Albemarle’s fine chemistry business for $570 million

Chemical Value Chain

The acquisition significantly strengthens and expands Grace’s existing pharma portfolio. Pharma & Consumer is the largest, fastest growing and most profitable subsegment within Grace’s Materials Technologies business.

February 28, 2021

Solvay to carve out soda ash business

Chemical Value Chain

Solvay says it has decided to organize its soda ash and derivatives business into a separate and fully controlled legal structure.

Send this to a friend