By: ICN Bureau
Last updated : March 06, 2018 8:18 pm
White Tale has stated that it maintains its opposition to the merger of equals between Huntsman and Clariant.
Leading specialty chemicals company Clariant confirms that its Board has received a letter from White Tale Holdings, the Cayman Island-based vehicle created by hedge funds Corvex and 40 North. According to the letter, White Tale has increased its stake in Clariant above 15 percent. In addition, White Tale has stated that it maintains its opposition to the merger of equals between Huntsman and Clariant.
Clariant does not agree with the statements made by White Tale in their open letter. To the contrary we are convinced that the proposed merger is a continuation of Clariant's strategy of becoming a world leader in specialty chemicals. Also, the terms of the proposed merger do not undervalue Clariant's shares. Moreover, the proposed merger offers substantial value creation to both sets of shareholders.
On top of the ambitious business plans of both companies over USD 3.5 billion of value will be created through cost synergies in excess of USD 400 million p.a. In addition to these cost synergies, tax synergies of USD 25 million and approximately USD 250 million additional organic revenues at approximately 20 percent EBITDA margin will be realized thanks to the complementary product portfolios. More so, significant further future potential will result from strengthening common R&D platforms and projects. This substantial value creation is unmatched by any other viable alternative.
The new company will be jointly led by both management teams under Swiss Corporate Governance, domiciled and headquartered in Switzerland. Hariolf Kottmann will become Chairman, Peter Huntsman will become CEO and Patrick Jany will become CFO of the new company. They will work together to deliver on their joint strategic vision for the merged company.