Solvay SA (Brussels, Belgium; www.solvay.com) has signed a definitive agreement to sell its 58.77% stake in its Thai subsidiary Vinythai PCL to Japanese company Asahi Glass (AGC; Tokyo; www.agc.com), thereby exiting its Asian polyvinyl chloride (PVC) activities.
The transaction is based on a total enterprise value of 16.5 billion Thai Baht (€ 435 million), representing a multiple of 8x mid-cycle EBITDA. Completion of the transaction is subject to customary closing conditions, including antitrust approvals, and is expected in the first half of 2017.
“This agreement follows Solvay’s earlier sale of the European PVC business and the upcoming completion of the divestment of its Brazilian PVC activities. These transactions represent a significant milestone in the Group’s transformation towards a multi-specialty chemical group,” said Vincent De Cuyper, member of Solvay’s Executive Committee.