Two major shareholders in talks to divest stakes in Titan Chemicals

18-Jun-10

Taiwan's Chao Group and Permodalan Nasional Bhd (PNB) - two major shareholders in Titan Chemicals Corp Bhd are in talks to divest their 37.4% and 30.2% stakes respectively, in the petrochemical company. The prospective buyer could be a foreign party as the company's top officials have in recent months made numerous trips to Europe and China. Since foreign players look at the company's liquidity and critical mass, this point of the cycle where everything is looking up is a good time to sell. Titan is a pioneer and Malaysia's largest integrated olefin-polyolefin producer and one of the largest polyolefin producers in South-East Asia, with a petrochemical complex based on two steam crackers in Pasir Gudang, Johor. It also has polyethylene facilities at a second site in Malaysia and Indonesia.