Indorama Ventures Acquires SASA In Turkey
BANGKOK, Thailand — April 10, 2014 — Indorama Ventures Public Company Limited (IVL) has announced the acquisition of 51% of leading Polyester and PET producer SASA Polyester Sanayi A.Ş (SASA) in Turkey through its wholly-owned subsidiary Indorama Netherlands B.V. (IBV) from Hacı Ömer Sabancı Holding A.Ş. (Sabancı Holding). SASA is a publicly listed company on the Borsa Istanbul and IBV will be conducting a mandatory tender offer for the remaining 49% of SASA’s share at Borsa Istanbul as per requirements of Turkish Capital Markets Legislation.
SASA incorporates integrated feedstock and polymer facilities producing DMT, staple fibers, filament yarns, PET, PBT polymers and specialty chemicals with a total plant capacity of 600,000 tons per annum. SASA supplies both Turkish and European markets with high quality, high value added products.
Mr. Aloke Lohia, Group CEO of Indorama Ventures Public Company Limited said, “SASA is an exciting addition to Indorama Ventures’ portfolio that allows us extended geographic expansion into a new and fast-expanding market and territory. The company is a well-known producer in the country and is an excellent first step into the Turkish market, allowing us to leverage its HVA production facilities to provide advantaged portfolio extensions for current and new customers. Turkey provides us the potential for expansion of domestic sales and opens up the opportunity to sell into the surrounding underserved region.”
“The acquisition is in line with our three dimensional strategic plan to expand broadly into fast-growing underserved markets, horizontally into high value add (HVA) products to offer a deeper portfolio of products to our customers and vertically integrating into our feedstock as SASA has onsite feedstock,”
Lohia explained. “SASA has a rich heritage of technology and expertise which will be complementary to Indorama Ventures since SASA is now serving over 54 countries with 150 different types of products. Moreover, Turkey’s unique geographical position straddling Europe, North Africa, Central Asia and Middle East offers the potential for faster growth in both the domestic and export markets to neighboring countries and Europe. Turkey’s textile sector is an important area of the economy an continues to grow, being a noted exporter to the key European market. We foresee this asset being the jewel in the crown of our expansion into the Turkish market and will be a good fit for our other expansion plans in the region.”
Standard Chartered Bank acted as financial advisor on the transaction to Indorama Ventures Pcl.
Posted April 10, 2014