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FRANKFURT (Reuters) - U.S. chemical substances maker Dow Inc has put German infrastructure belongings up on the market in a potential 800 million euro ($966 million) deal as it seeks money for funding in other places, sources near the count informed Reuters.
FILE photograph: A Dow signal is viewed at the third China overseas Import Expo (CIIE) in Shanghai, China November 5, 2020. REUTERS/Aly music
Chief govt James Fitterling final month mentioned that Dow would proceed to offload infrastructure corporations from its stability sheet and make use of the money for capex, smaller acquisitions or share buybacks.
while Dow would promote the infrastructure at petrochemicals websites in Stade, Schkopau und Boehlen, it would continue to supply plastics and intermediates there, paying usage costs to the brand new owner. Dow is the leading user however no longer the only one operating in the three chemical parks.
Chemical parks typically deliver infrastructure for the likes of electrical energy, steam, natural fuel and different capabilities to resident producers.
“Dow has advised personnel in Germany that it is exploring alternatives regarding definite web page infrastructure belongings and capabilities at its Stade, Schkopau and Boehlen sites, but no last resolution has been made”, a company spokesman noted.
In the same deal in 2019, Bayer and Lanxess offered integrated chemical web page operator Currenta to Macquarie in a three.5 billion euro deal.
Dow has despatched out assistance applications to prospective bidders including KKR, Blackstone, BlackRock, Brookfield Asset management, Macquarie, First Sentier and DIF Capital companions, the sources noted.
The enterprise is being marketed with an annual revenue figure of 300 million euros with core earnings of about sixty five million euros.
Bidders might price the infrastructure belongings at about 12-13 instances core earnings, the sources added.
Dow is working with Morgan Stanley on the divestiture the sources talked about.
Morgan Stanley declined to comment.
($1 = 0.8284 euros)
extra reporting by using Arathy Nair; modifying through David Goodman
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