Indorama Ventures Public Company Limited (“IVL” or the “Company”) would like to inform that it has, through its indirect subsidiary Indorama Ventures Brazil Participações S.A. (“IVBRZ”), signed a definitive Sale and Purchase Agreement on November 1st, 2018 with M&G Fibras Holding S.A., M&G Fibras Participações Ltda., and M&G Fibras e Resinas Ltda. to acquire a 100% stake in M&G Fibras Brasil Ltda. located in Cabo de Santo Agostinho, Brazil.
The site produces Polyester Staple Fiber, with an annual capacity of 75,000 tonnes and will be in close proximity to IVL’s PET plant in Brazil. This acquisition will provide an opportunity to IVL to establish its global Footprint in the Fibers business in South America’s largest economy, Brazil and participate not only in the large domestic market but also enjoy strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption.
The value of the above acquisition, calculated in accordance with the regulations of the Capital Market Supervisory Board and the Stock Exchange of Thailand, as prescribed by the regulations of the Stock Exchange of Thailand Re: Disclosure of Information and Other Acts of Listed Companies Concerning the Acquisition and Disposition of Assets, 2004 (as amended), is less than 15 percent and the total size of all transactions in the past 6 months also does not exceed the 15 percent threshold limits as prescribed in the regulations.
This transaction is expected to be completed within Q4/2018, subject to regulatory approvals.
Source: Indorama Ventures