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Titan Chemicals to aquire PT Peni for USD 20 million cash and facilitate resolution of USD 58 milllion Debt

Petrochemical industry | 27 Dec 2005 IST | Polymerupdate.com
Kuala Lumpur, Tuesday, 27 Dec - Titan Petchem (M) Sdn Bhd, a wholly-owned subsidiary of Titan Chemicals Corp. Bhd., is to acquire 100% of the equity of PT Petrokimia Nusantara Interindo ("PT PENI"), the largest Indonesian polyethylene producer, from Golden Park Limited for USD20 mil cash and will facilitate the resolution of USD58 mil in debts owed by PT PENI to its bankers. The USD58 mil consideration shall be satisfied by Titan Petchem procuring that PT PENI repays its lenders under the credit facilities of PT PENI a maximum amount of USD58 mil or, at Titan Petchem~s option, by acquiring shares of CBL with PT PENI continuing to owe such amount to the lenders under the said credit facilities.

PT PENI is the owner of a petrochemical complex in Kaputen Serang, Banten Province, Java comprising 3 Linear Low Density Polyethylene ("LLDPE") / High Density Polyethylene ("HDPE") lines with a nameplate capacity of 450,000 MTA. The complex was built by British Petroleum and the plant utilizes BP~s renowned Innovene Technology. PT PENI has issued and paid-up share capital of USD643,750,000 comprising 643,750,000 ordinary shares of USD1 each. The company is principally engaged in the manufacture of polyethylene.

The net assets and loss after taxation of PT PENI based on the audited accounts for the financial year ended 31 December 2004 are USD147.93 million and USD79.35 million respectively.

About Titan Chemicals Corp.bhd,
Titan Chemicals is the first and largest integrated olefins and polyoiefins producer in Malaysia and the second largest polyoiefins producer in South-East Asia in terms of capacity. It has eight world-class manufacturing plants located on two integrated industrial sites in Pasir Gudang and Tanjung Langsat in Johor. Titan operates two Naphtha Crackers which produce among others ethylene and propylene, the two main feedstocks for Titans five polyoiefins plants. Ethylene and propylene are the primary building blocks for the petrochemicals industry which uses these chemicals to produce hundreds of ethyiene/propylene derivatives which have diverse applications in the consumer and manufacturing industries.

Titan manufactures two of those derivatives; namely polyethylene and polypropylene which are two of the most widely used plastics in the world. These products are fundamental to the production of many diverse consumer and industrial products including flexible and rigid packaging, fibres and automotive parts. In addition, the by-product streams from the crackers are used as feedstock in Titan~s aromatics plant where benzene and toluene are produced. Another by-product known as mixed C4~s will be used in due course to extract butadiene; the raw material used in production of styrene-butadiene rubber copolymers, also known as synthetic rubber.
Note: This story has not been edited by The Polymerupdate Editorial team and is auto-generated from a syndicated feed.

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