Axalta today said it is launching a review of strategic alternatives, including a potential sale of the company. Axalta shares jumped 13.6% after the news on 19 June, closing at $29.33.
The company has formed a strategic review committee chaired by independent presiding director Mark Garrett. The committee also includes Axalta CEO Robert Bryant and independent director Samuel Smolik.
“Axalta continues to execute on its long-term strategy, delivering significant cost savings to bolster our industry-leading margins, redeploying free cash flow to drive accretive organic and inorganic growth initiatives, and returning more than $380 million to shareholders over the last two years,” Bryant says.
Axalta’s largest shareholder is Berkshire Hathaway, with a 10.3% stake. Barclays and Evercore are acting as financial advisors to Axalta on the review, and Morrison & Foerster is acting as legal advisor.
The company is facing headwinds from soft automotive production, although pressure on margins seems likely to abate given a recent pullback in energy prices, says Laurence Alexander, an analyst with Jefferies (New York). “Axalta has discussed a sale of the company in the past, and our model pegs the company value at $38/share,” Alexander adds. “Over the past three years, bolt-on M&A and share repurchases have been the first use of cash.”
The timing and outcome are uncertain, and Axalta says it will not comment on the review until it is complete.
By Vincent Valk
Source: Chemical Week
Italy’s Treasury has sold a 2.8% stake in oil and gas company Eni, raising approximately €1.4bn. Despite this reduction, the Italian Government will own a third of Eni, with a combined stake of more than 30% held between the Treasury and state lender Cassa Depositi e Prestiti, which owns another 28.5% stake.
Umicore announces the appointment of Bart Sap as Chief Executive Officer, effective May 16th. He will succeed Mathias Miedreich who has decided to step down, in mutual agreement with the Supervisory Board. Bart Sap joined Umicore in 2004 and has been the Executive Vice President Catalysis since March 2021.
Hungarian energy and petrochemicals group MOL has inaugurated its €1.3 billion polyol complex in Tiszaújváros, Hungary, with a capacity of around 200,000 t/y of polyol, a widely used plastic raw material. According to MOL, the commissioning is a significant milestone, as it is the only company in Hungary and Central and Eastern Europe that covers the entire value chain from crude oil processing to polyol production.
