Indorama Ventures Public Company Limited entered into a purchase agreement to acquire polyethylene terephthalate plant in Apple Grove, West Virginia, and its research and development centre in Sharon Center, Ohio from M&G USA Corporation and M&G Polymers USA for $10 million.
January 16, 2018
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Indorama Ventures Public Company Limited (SET:IVL) entered into a purchase agreement to acquire polyethylene terephthalate plant in Apple Grove, West Virginia, and its research and development centre in Sharon Center, Ohio from M&G USA Corporation and M&G Polymers USA for $10 million on January 17, 2018. Under the terms of agreement, Indorama Ventures will pay $6 million in cash along with assuming the liabilities. An escrow amount of $0.6 million has been deposited with the counsel agent of M&G USA Corp. and M&G Polymers, which will be treated as termination fee in case of transaction is terminated from Indorama Ventures. The transaction is subject to
approval from bankruptcy court. As of December 20, 2018 Indorama Ventures Public Company Limited received all the regulatory clearance in the US for the proposed acquisition of integrated purified terephthalic acid polyethylene terephthalate. (SET:IVL)Michael Cohen of Jones Day acted as bankruptcy advisor to M&G USA Corp. and M&G Polymers. Nicholas San Filippo, Paul Kizel, and Sam Khan of Lowenstein Sandler LLP acted as legal advisor and HSBC Bank PLC has acted as financial advisor to Indorama Venture. Michael Cohen, Jeffrey Symons and Carl Black of Jones Day acted as legal advisor to M&G USA Corporation.
Indorama Ventures Public Company Limited is a Thailand-based petrochemicals producer. The Company operates through three segments: Combined PET, Indovinya and Fibers. The Combined PET segment manufactures and distributes the full polyethylene terephthalate (PET) value chain comprising Paraxylene (PX), purified terephthalic acid (PTA), PET, and Recycling (Integrated PET), Specialty PET-related chemicals, PIA, and NDC (Specialty Chemicals), PET preforms and packaging (Packaging), and Ethane to MEG and MTBE (Intermediates Chemicals). The Indovinya segment manufactures and distributes Integrated Downstream Surfactants. The Fibers segment is engaged in manufacturing and distribution of Polyester, Rayon, Nylon, Polypropylene, composites and worsted wool fibers, for three end-use segments: mobility, lifestyle, and hygiene. Its polyester and other types of fibers and yarns are used in the Automotive and Technical, Home and Apparel, and Hygiene and Medical segments.
Indorama Ventures Public Company Limited entered into a purchase agreement to acquire polyethylene terephthalate plant in Apple Grove, West Virginia, and its research and development centre in Sharon Center, Ohio from M&G USA Corporation and M&G Polymers USA for $10 million.