Huntsman Completes the Sale of Shares in Venator Materials PLC

Rhea-AI Summary

Huntsman Corporation (NYSE: HUN) has successfully sold around 42.4 million shares of Venator Materials PLC to SK Capital Partners, generating about $100 million in cash. This transaction includes an option for the sale of 9.7 million additional shares at $2.15 per share. Additionally, Huntsman will realize $150 million in immediate cash tax savings due to the sale, totaling approximately $250 million in cash benefits this year. CEO Peter Huntsman expressed confidence in Venator’s future as the markets strengthen.

Positive

• Completed sale of 42.4 million shares for approximately $100 million in cash.
• Secured $150 million in immediate cash tax savings, enhancing overall financial position.
• Total cash benefits of approximately $250 million from the transaction.

Negative

• None.

THE WOODLANDS, Texas, Dec. 23, 2020 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) announced today that it has completed the sale of approximately 42.4 million ordinary shares of Venator Materials PLC to funds advised by SK Capital Partners, LP. The Company received approximately $100 million in cash, which includes $8 million for a 30-month option for the sale of the remaining approximate 9.7 million ordinary shares held by Huntsman at $2.15 per share. Together with immediate cash tax savings of approximately $150 million from offsetting the capital loss on the sale of Venator shares against the capital gain realized on the sale of our chemical intermediates and surfactants businesses that closed in early January of this year, Huntsman secured an aggregate total related benefit of approximately $250 million in cash this year.

Peter Huntsman, CEO and Chairman, commented, "We are pleased to have completed this transaction before year end enabling us to reduce our current tax obligations by $150 million. Venator has a bright future as Tio2 markets strengthen and the business continues to improve. I am confident that SK Capital has the capacity to even further enhance Venator's prospects."

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
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LinkedIn: www.linkedin.com/company/huntsman

Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

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SOURCE Huntsman Corporation

FAQ

What was the outcome of Huntsman's sale of shares in Venator Materials PLC?

Huntsman completed the sale of approximately 42.4 million shares for around $100 million.

How much cash tax savings did Huntsman achieve from the Venator sale?

Huntsman secured approximately $150 million in immediate cash tax savings.

What total financial benefit did Huntsman report from the Venator transaction?

Huntsman reported an aggregate total cash benefit of about $250 million from the transaction.

What was the sale price per share for additional Venator shares held by Huntsman?

The additional 9.7 million shares are set to be sold at $2.15 per share.