BANGKOK, Thailand — March 21, 2018 — Corpus Christi Polymers LLC (CC Polymers) — a newly-formed joint venture between Alpek S.A.B. de C.V.; Indorama Ventures Holdings LP a subsidiary of Indorama Ventures Public Co. Ltd.; and Far Eastern Investment (Holding) Ltd. — has entered into an asset purchase agreement with M&G USA Corp. and its affiliated debtors whereby CC Polymers will acquire the integrated PTA-PET plant currently under construction in Corpus Christi, Texas, certain M&G intellectual property, and a desalination/boiler plant providing water and steam needs to the Corpus Christi Project. The purchase agreement provides M&G with a binding bid of $1.125 billion in cash and other capital contributions.
The Corpus Christi Project is an integrated PTA-PET plant currently under development that, when completed, will have nominal capacity of 1.1 million and 1.3 million metric tons per year of PET and PTA, respectively. The plant is expected to be the largest single line vertically integrated PTA-PET production facility in the world and the largest PTA plant in the Americas.
Pursuant to the terms of the newly formed joint venture:
The parties will provide resources to CC Polymers to complete the project in the most efficient and cost effective way. A timeline for project completion will be communicated at a later stage.
Each of Alpek, Indorama, and Far Eastern will have the right to receive one-third of the capacity of PTA and PET produced at the Corpus Christi Project upon completion. Each party will independently procure its raw materials and will independently sell and distribute their corresponding PTA and PET.
The closing of the transaction is subject to conditions precedent including approval by the bankruptcy court and applicable governmental authorities.
PJT Partners is serving as financial advisor and Weil, Gotshal & Manges LLP is serving as legal advisor to Alpek. HSBC is serving as financial advisor and Lowenstein Sandler LLP is serving as legal advisor to Indorama. Morgan Stanley is serving as financial advisor and Duane Morris LLP is serving as legal advisor to Far Eastern.
Posted March 21, 2018
Source: Indorama Ventures