Dow to hive off ownership in OPTIMAL Group to PETRONAS for US$660 mln

31-Jul-09

In a bid to increase Dow's financial flexibility, improve its cash flow, and pay down its bridge loan, Dow haas planned to divest in OPTIMAL. Dow’s Union Carbide Corporation subsidiary is to sell its entire shares of ownership in the OPTIMAL Group of Companies (OPTIMAL) to PETRONAS for US$660 mln. The transaction is subject to customary conditions and approvals, is expected to conclude by end of Q3-2009. Dow will market OPTIMAL's basic and performance chemicals products to Dow's existing customer base in Asia Pacific. PETRONAS would fund this acquisition through internally generated funds. The acquisition will enable PETRONAS to strengthen its presence in Olefins and reinforce the growth of the Malaysian petrochemical industry.