Belgian resin company Solvay SA says a deal to sell its majority stake in South American PVC producer Solvay Indupa will go ahead and is unaffected by an objection from the Argentinian share regulator.
"Contrary to what we have been reading in some media reports this week, Solvay confirms that the planned divestment of its 70.59 percent stake in Solvay Indupa to Brazil's leading chemical producer Braskem is well underway," Solvay said in a statement.
The Solvay Indupa shares not owned by Solvay are publically traded on the Argentinian stock exchange. Braskem is required by Argentinean law to launch a tender offer to buy these outstanding shares.
On Jan. 3, Argentina's Comision Nacional de Valores announced Braskem's tender offer price of 1.35 Argentinian pesos was too low, based on the market traded share price. The market regulator told Braskem to set an equitable price in order to comply with market standards.
Solvay said in its statement that Braskem has subsequently been in discussions with CNV to understand its decision and to set a new price.
In any case, Solvay said its divestment is not conditional on the success of the tender offer. In the meantime, anti-trust filings are being made as planned in Brazil and Argentina, it said.