Through its wholly owned subsidiary Indorama Netherlands B.V. (IBV), Bangkok-based Indorama Ventures Public Co. Ltd. (IVL) has acquired a 51-percent share of Turkey-based SASA Polyester Sanayi A.S. (SASA) from Haci Omer Sabanci Holding A.S. Because SASA is a publicly listed company on the Borsa Istanbul, IBV will conduct a mandatory tender offer for the remaining 49 percent of the company to Borsa Istanbul as is required by the Turkish Capital Markets Legislation. Standard Chartered Bank acted as Indorama’s financial advisor on the transaction.
SASA operates integrated feedstock and polymer facilities that produce dimethyl terephthalate, staple fibers, filament yarns, polyester and polybutylene terephthalate polymers, and specialty chemicals. The company has an annual capacity of 600,000 tons, and supplies customers in Turkey and Europe.
“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,” said Aloke Lohia, group CEO, Indorama Ventures. “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.”