ici sell-off to dupont raises $3bn - melinex polyester film
ICI sold half of its commodity chemicals business to Dupont yesterday for $ 3bn (pounds 1. 8bn)
Far above the price expected by the stock market.
Shares of the chemical group rose 886 to Pence.
Analysts were also surprised by the speed of the sale.
ICI has raised 2, including DuPont.
Since Unilever bought its specialty chemicals business for £ 5bn, 9bn has been sold in just two months.
In May, ICI said that after the acquisition, 3bn will be raised from the disposal in the next three years to reduce debt.
Analysts said disposal of the remaining industrial chemicals assets could be achieved at least 1 pound, and the total proceeds from disposal exceeded 4 pounds.
Charles Miller Smith, chief executive officer of ICI, said the deals with Unilever "confirm the decisive shift of ICI from the commodity chemicals group to one of the world's leading specialty chemicals companies ".
"We now have a world portfolio --
Our first-class enterprises in the three key areas of coatings, specialty chemicals and materials provide us with a bright growth prospect, provide us with more predictable future benefits, and capital density
We have actually reached this goal. pounds 3bn]
Less than three months later, "he said.
"This is a good deal," said one analyst.
It is unprecedented to achieve this in such a short period of time.
I don't think we are aware of the scale of this achievement.
"Yesterday's disposal announcement came less than a week after ICI said it would receive £ 1 bn in proceeds from the sale of its stake in ICI Australia and carry out property disposal valued at approximately £ 120.
Mr. Miller Smith says there will be further sales.
Over the next 12 months, we need to do more to ensure a completely different ICI.
"The disposal of DuPont includes the polyester polymer and intermediate business of ICI, the titanium dioxide business outside North America and the polyester film business.
Overall, the sales of these businesses are 1. 5bn.
When the group sells quarrying chemicals and the remaining titanium oxide business as well as explosives, sales of another pound of 2bn will disappear from the group.
ICI said DuPont declined to buy North American Tioxide due to monopoly issues, but had DuPont received less than $150 in funding, DuPont agreed to cover the deficit.
ICI's chief financial officer, Alan Swar, said that reducing exposure to bulk chemicals would account for more than 5 of sales compared to 37 last year and would reduce the impact of stronger sterling on profits.
ICI's sales were around a quarter, and it was severely squeezed due to high manufacturing costs in the UK and low sales prices abroad.
Mr. Spall estimated that the pound was hit by 1 pounds when the interim results were released later this month, saying: "At the lighter end of the chemicals, manufacturing tends to be close to customers.
We can buy and sell in the same currency.
Mr Spall said: "the proceeds should be reduced by approximately 6bn pounds of borrowing, reducing liabilities by about 20 percent, to" less than 100 ", and revenue will increase by 1998.
Analysts said the disposal price was 1.
Sales of 4 times 1996 are "very full ".
However, Peter Cartwright of Williams de Broe said that strategy is more important for DuPont, and DuPont's share of the world's white pigment titanium dioxide market for coating will almost double to more than 40.