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PTT Chemical Joins Sime Darby in Ownership of Cognis Oleochemicals
Posted: August 6, 2008
PTT Chemical International, a subsidiary of PTT Chemical, will sign a joint venture agreement with Sime Darby for the joint ownership and control of Cognis Oleochemicals.
Cognis Oleochemicals produces a wide range of oleochemical products derived from natural renewable raw materials such as palm oil, palm kernel oil, other vegetable oils and tallow. Prior to signing the joint venture agreement, PTT Chemical International also signed a share purchase agreement with Cognis BV, a wholly owned subsidiary of Cognis GmbH, to acquire Cognis BV's 50% stake in Cognis Oleochemicals for the transaction cost of €104 million in cash.
Sime Darby, a producer of palm oil, retains its 50% share stake in Cognis Oleochemicals, which will continue to operate under the Cognis Oleochemicals name for an interim period until the new name is established. The joint venture agreement will take effect upon completion of the share purchase transaction, which is expected to close in late September.
The share purchase agreement, which is subject to standard closing conditions, has been approved by PTT Chemical International's Board. Standard Chartered Bank acted as financial advisor to PTT Chemical International for the share purchase. Under the terms of the joint venture agreement, PTT Chemical and Sime Darby will share control of Cognis Oleochemicals once the joint venture agreement takes effect. Each partner will be represented by an equal number of Directors on Cognis Oleochemicals' Board and the existing Cognis Oleochemicals management team will remain in place. For more information, visit www.cognis.com.