Hexion Specialty Chemicals Confirms Proposal to Acquire Huntsman Corporation for $27.25 Per Share in Cash
COLUMBUS, Ohio (July 4, 2007)-- Hexion Specialty Chemicals Inc., an Apollo Management L.P. portfolio company, today announced that it has made a definitive proposal to the Transaction Committee of the Board of Directors of Huntsman Corporation (NYSE: HUN) to acquire the Company for $10.4 billion (including refinanced debt), or $27.25 per share, in cash. The offer represents a premium of approximately 8% over Basell's previously announced agreement to acquire Huntsman for $25.25 per share and includes an 8% per annum increase (net of Huntsman dividends) in the event that the transaction requires more than 9 months to complete.
Hexion's proposal is subject to a customary merger agreement, which has been submitted to Huntsman's Transaction Committee together with Hexion's offer. The transaction would be subject to regulatory approvals and the affirmative vote of Huntsman shareholders. The proposal is fully financed pursuant to commitments from Credit Suisse and Deutsche Bank.
Hexion's proposal is currently under review by the Huntsman Transaction Committee.
About Hexion Specialty Chemicals, Inc.
Based in Columbus, Ohio (USA), Hexion Specialty Chemicals is the global leader in thermoset resins. Hexion serves the global wood and industrial markets through a broad range of thermoset technologies, specialty products and technical support for customers in a diverse range of applications and industries. Hexion had 2006 sales of $5.2 billion and employs more than 7,000 associates. Additional information is available at www.hexion.com.
About Apollo Management
Founded in 1990, Apollo is a recognized leader in private equity, debt and capital markets investing. Since its inception, Apollo has successfully invested over $16 billion in companies representing a wide variety of industries, both in the U.S. and internationally. Apollo is currently investing its sixth private equity fund, Apollo Investment Fund VI, L.P., which along with related co-investment entities, has approximately $12 billion of committed capital.
Safe Harbor Language
Statements contained in this press release may include "forward-looking statements" about the Company's financial results under the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Act of 1934, as amended. Forward-looking statements are based on our currently available financial, economic and competitive
data and on business plans. Actual results could vary materially depending on risks and uncertainties that may affect the company's operations, markets, services, prices and other factors as discussed in our filings with the Securities and Exchange Commission. These risks and uncertainties include, but are not limited to, economic, competitive, legal, governmental and technological factors. There is no assurance that the company's expectations will be realized. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or
otherwise, except as otherwise required by law.
Hexion Specialty Chemicals, Inc.
Director, Investor Relations or Media -
Sard Verbinnen & Co Anna