IPIC Completes Acquisition of Nova Chemicals
Abu Dhabi’s investment fund International Petroleum Investment Company (IPIC) completed the acquisition of Nova Chemicals Corporation on 6 July. Nova will continue to operate its chemicals and plastics business from its North American base, while IPIC will provide a $250mn credit backstop facility to boost the company’s liquidity. Under the agreement, a wholly-owned subsidiary of IPIC acquired all of Nova’s issued and outstanding common shares for $6/share. De-listing of the common shares from the Toronto Stock Exchange and the New York Stock Exchange is expected shortly. Nova is one of North America’s leading plastics and chemicals companies, developing and manufacturing materials used in the worldwide consumer, industrial and packaging industries.
At the end of June IPIC signed an agreement to receive a $5bn corporate loan, divided into two tranches of $2.5bn. Besides financing the acquisition of Nova and an increase in IPIC’s stake in Spanish refining and marketing firm Cepsa, the loan will also refinance a €975mn loan arranged last year (MEES, 6 July). Earlier in 2009, IPIC agreed to acquire 70% of the shares of MAN Ferrostaal from MAN AG, the German industrial group (MEES, 19 January) and a 32.5% stake in Cepsa from Banco Santander (MEES, 6 April).
Copyright MEES 2009.
