3:31 | 23.07.2008
DGAP-News: Cognis GmbH: Cognis sells its stake in Cognis Oleochemicals to PTT Chemical
Cognis GmbH / Disposal
23.07.2008
Release of a Corporate News, transmitted by DGAP – a company of EquityStory AG.
The issuer / publisher is solely responsible for the content of this announcement.
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INVESTOR RELATIONS RELEASE
Monheim, July 23, 2008
Cognis sells its stake in Cognis Oleochemicals to PTT Chemical
Specialty chemicals supplier Cognis today announced the sale of its
50-percent stake in the Cognis Oleochemicals joint venture to PTT Chemical
International Private Ltd. (’PTT Chemical International’) a Singapore based
wholly owned subsidiary of PTT Chemical Public Company Limited (’PPT
Chemical’). PTT Chemical is Thailand’s largest producer of olefins and
associated products. The sale is in line with Cognis’ strategy of focusing
on its core businesses driven by the wellness and sustainability trends.
Agreements respecting the transfer of the business and related transactions
were signed today in Kuala Lumpur effective June 30, 2008. The final
transaction is subject to usual closing conditions including regulatory
approvals and is expected to be completed by the end of September 2008.
Cognis has sold its 50 percent stake in the joint venture company to PTT
Chemical International for about 104 million euros in cash, representing an
enterprise value of 285 million euros for the whole joint venture company.
Cognis already has established a successful relationship with PTT Chemical:
In 2005 they founded Thai Ethoxylate Ltd., a 50:50 joint venture and
Thailand’s first producer of fatty alcohol ethoxylate. 2006 saw the
founding of Thai Fatty Alcohols Company Ltd., a 50:50 joint venture between
Cognis and PTT Chemical’s subsidiary Thai Oleochemicals for the production
and marketing of fatty alcohols.
Cognis Oleochemicals is a major producer of natural-based oleochemical
products and until now was a 50:50 joint venture between Sime Darby
Plantation Sdn Bhd. and Cognis. It operates production sites in Europe,
North America and Asia and achieved sales of 729 million euros, including
130 million euros deliveries to Cognis in 2007. Cognis and Sime Darby have
been collaborating on the production, marketing and distribution of fatty
acids, glycerin and associated products for almost 30 years. In 2006, both
companies expanded the scope of their existing joint venture by
transferring Cognis’ global oleochemicals and plastics technology
businesses into an operating company.
Comments Antonio Trius, CEO of Cognis: ‘The sale of our stake in Cognis
Oleochemicals reflects our strategy to consistently concentrate on the
innovation-driven growth markets of wellness and sustainability. On the
basis of our excellent experiences with Sime Darby and PTT Chemical over
many years, we are convinced that the new joint venture offers synergies
that will help Oleochemicals to further develop its businesses. By selling
our stake to well known partners we ensure a stable supply of our
oleochemical basestocks is secured, as we are intending to continue
sourcing products from the business under normal third party commercial
terms.’
‘PTT Chemical is delighted to join with Sime Darby in a strategic
partnership that builds a solid platform and provides unprecedented
opportunities for Cognis Oleochemicals’ long-term growth and stability,’
said Aditheb Bisalbutr, PTT Chemical President and CEO.
Cognis Oleochemicals will continue to operate under the Cognis
Oleochemicals name for an interim period until a new name is established.
Contact
Monica Stephensons, Senior Manager Investor Relations
Cognis GmbH
Phone: +49-2173-4995-279
E-mail: investor-relations@cognis.com
Internet: www.cognis.com
23.07.2008 Financial News transmitted by DGAP
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Language: English
Issuer: Cognis GmbH
Rheinpromenade 1
40789 Monheim
Deutschland
Phone: 02173-4995-279
Fax: 0211-2006-10279
E-mail: investor-relations@cognis.com
Internet: www.cognis.com
ISIN: XS0191508281
WKN: A0BM7Q
Listed: Freiverkehr in Stuttgart; Open Market in Frankfurt
End of News DGAP News-Service
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