South Korea's number two ethylene maker Honam Petrochemical has acquired 72.3% stake in Malaysia's Titan Chemicals as per Platts. Honam completed a payment of Won 1.1 trillion ($990 million) for a 72.3% stake in Titan on November 9 and gained the managerial right.
Titan has informed its shareholders that Honam had made an unconditional takeover offer on November 1 for all remaining shares in Titan it did not own. The offer from Honam, which values Titan's shares at RM2.35, will open on November 22 and close on December 13.
The deal marks Honam's third acquisition, following Hyundai Petrochemical in 2003 and KP Chemical in 2004. Titan is Malaysia's largest integrated olefins and polyolefins producer, and one of the top 30 companies in Malaysia by asset size. It has capacity to produce 1.2 mln tpa of olefins, 1.5 mln tpa of polyolefins, 0.2 mln tpa of aromatics, 0.1 mln tpa of butadiene and 38,000 tpa of BOPP film through facilities and plants located in Malaysia and Indonesia.