ICI banks Huntsman cash early
CHEMICALS giant ICI gave investors a lift after banking a large chunk of its interest in a US company sooner than expected. ICI has received £110m for selling part of its 30% stake in Huntsman International and should pick up the remaining £185m by next May. The final date for the completion of the sale is now about three months earlier than ICI had anticipated at the end of last year.
An ICI spokesman said the timing of the first payment and the proposed deadline for the remainder were both sooner than anticipated. Chief executive Brendan O'Neill said the arrangements represented a 'good deal for ICI and its shareholders'. He added: 'It delivers excellent value overall, enables us to turn part of our investment into cash now and to get the remainder earlier than previously anticipated.'
The sale comes three years after the Huntsman group acquired the bulk chemicals business of ICI for £1.8bn.
ICI kept a 30% stake in Huntsman International with an option to sell for around £300m.
The majority of the money, which is being paid by Credit Suisse First Boston Global Opportunities Partners, will be put towards reducing ICI's debt mountain, which stood at £2.4bn at the end of March.
