25, SABIC, a Saudi-based industrial company, has acquired 24.99% of Clariant Switzerland as its largest shareholder. According to estimates, Clariant is more than 70% likely to be acquired.
On January 16, Bagar Bank said that in the future, Clariant is about 50% likely to be acquired or dissolved, and Bargad predicts that Clariant's December target price will be 32 Swiss francs ($ 33.68).
However, on Thursday, Clariant shares fell more than 6% to 26.61 Swiss francs.
And given Clariant's merger with Huntsman, if Clariant sells more than 35% of its shares to a third party by April 2019, Clariant will have a liability to pay Huntsman Corp. 60 million Dollars.
SABIC, the Saudi-based infrastructure company, said in a filing with the Saudi Stock Exchange on Thursday that SABIC has acquired shares of Clariant from 40North and Corvex Management through financing from foreign banks.
Acquisition costs have not been disclosed.
However, according to Clariant's market capitalization of approximately 8.61 billion Swiss francs, 24.99% of the shares will be worth 2.15 billion Swiss francs (2.23 billion U.S. dollars).
The seller, represented by WHITETALE, acted as an investor in Clariant and opposed the merger of Clariant and Huntsman.
Last December, Clariant CEOHariolf Kottman said Clariant's aim is to raise prices and hopefully it will be able to persuade WHITETALE to sell their shares while excluding the possibility of 'white knights' blocking the emergence of investment groups.
SABIC said: "This transaction is only part of our strategic goals and our goal is to be able to offer our customers a wide range of products to solve a variety of problems for our customers." Clariant has 80 factories , Total chemical output reached 4 million tons / year.
Saudi Arabia also added that 'At the same time, it should be noted that according to the latest financial statements, the purchase of Clariant shares does not exceed 10% of our net assets' and the acquisition of the business will be reflected in the first quarter of SABIC Performance to go.
Clariant's spokesman said Clariant will continue negotiations with SABIC, just as it did with WHITETALE to create long-term value for all its shareholders.
In late October 2017, White tale acquired more than 20% of Clariant shares, blocking the acquisition of Huntsman and Clariant.
Barard's analyst Markus Mayer said SABIC may be more interested in Clariant's catalyst business because Saudi Arabia's main market is downstream.
Markus Mayer said: 'According to our sources, SABIC was one of the last round winners in the sale of Sud-Chemie in 2011. Therefore, we think SABIC may be most interested in Clariant's catalyst sector as the catalyst business has just been Start recovery, we think the timing of this acquisition is very reasonable.