March 15 (Reuters) – Solvay SOLB.BR will split into two independent listed companies in 2023, one focused on chemicals and the other on specialty materials and solutions, the Belgian group said on Tuesday. a statement.
In February, Solvay announced record profits for 2021 and increased the amount of its dividend after generating positive free cash flow for the eleventh consecutive quarter.
A company, known for now as EssentialCo, would include Solvay’s current chemicals and specialty chemicals business, including soda ash, peroxides and silica. These generated approximately €4.1 billion in net sales in 2021.
A second company, temporarily called SpecialtyCo, would include its materials business, including specialty polymers, composites and solutions. These activities generated approximately €6 billion in net sales in 2021.
“Despite the complexity of the current global environment, we remain convinced that pursuing this project now will allow us to create attractive long-term value for shareholders,” said Ilham Kadri, CEO of Solvay, in a press release.
Solvac SOAC.BR, Solvay’s reference shareholder, announced its support for this project in a press release.
The separation would be effected by a partial spin-off from Solvay, with the specialty activities being transferred to SpecialtyCo.
Solvay shareholders would retain their current shares and receive shares of the new company on a pro rata basis. Both companies should be listed on Euronext Brussels and Euronext Paris.
The transaction is expected to close in the second half of 2023, depending on market and regulatory conditions.
The names of each company, the composition of the boards of directors and the management teams will be communicated later.
Solvay’s financial advisers are Morgan Stanley and BNP Paribas and its legal advisers are Cleary Gottlieb Steen & Hamilton and Linklaters.
(Marine Strauss report, French version Augustin Turpin, edited by Matthieu Protard and Sophie Louet)