UAE buys Canadian chemical firm
Wednesday, 25 February 2009
OTTAWA, Feb 24 (AFP): Abu Dhabi's International Petroleum Investment Company (IPIC) purchased Canadian plastics and chemical firm Nova Chemicals for 2.3 billion dollars US, the companies announced yesterday.
The six dollars per share offer represents a 348-per cent premium over Nova's Friday closing price of shares in Toronto and New York.
IPIC is also pumping 250 million dollars worth of loans into the Canadian company as part of the terms of the deal "to provide Nova Chemicals with sufficient liquidity," said a Nova statement. Nova management, which supports the acquisition, meanwhile, is to remain at the helm of the Canadian company, it said. "The opportunity to join IPIC comes at a good time for Nova Chemicals and will enable us to offer both stability and long- term growth to many of our stakeholders," said Nova chief executive Jeff Lipton.
"IPIC is well financed and has a track record of working successfully with companies like ours."
The six dollars per share offer represents a 348-per cent premium over Nova's Friday closing price of shares in Toronto and New York.
IPIC is also pumping 250 million dollars worth of loans into the Canadian company as part of the terms of the deal "to provide Nova Chemicals with sufficient liquidity," said a Nova statement. Nova management, which supports the acquisition, meanwhile, is to remain at the helm of the Canadian company, it said. "The opportunity to join IPIC comes at a good time for Nova Chemicals and will enable us to offer both stability and long- term growth to many of our stakeholders," said Nova chief executive Jeff Lipton.
"IPIC is well financed and has a track record of working successfully with companies like ours."