Sector News

Solvay launches 1.5 bln euro rights issue for Cytec buy

December 3, 2015
Life sciences

(Reuters) – Solvay SA launched a share issue to existing shareholders on Thursday to complete funding for the Belgian chemicals group’s $5.5 billion purchase of Cytec Industries Inc.

Existing shareholders will receive the right to buy one new share at 70.83 euros for every four existing shares. Solvay shares closed on Wednesday at 105.80 euros.

The rights subscription period will last until Dec. 15. with settlement on or around Dec. 21.

Solvay said it expected to close its acquisition of Cytec on Dec. 9 after securing conditional antitrust clearance from the European Commission on Wednesday.

Solvay shareholder Solvac has committed to exercise in full its rights and thereby maintain its 30.20 percent stake.

Also on Thursday it announced a two-for-five rights issue of up to 452 million euros at an issue price of 74 euros.

In buying Cytec, Solvay will gain a leader in lightweight composite materials for which there is increasing demand from the aerospace and automotive sectors as they seek to reduce carbon dioxide emissions.

It will also add to Solvay’s existing formulations to maximise the amount of ore extracted in mining.

Solvay sold $1.6 billion of bonds Tuesday after a 2.25 billion euro bond and 1.0 billion hybrid bond issue last week. (Reporting by Philip Blenkinsop; editing by Jason Neely)

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