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REUTERS
FRANKFURT, Nov 17: German chemicals group Hoechst AG said it was splitting into two listed companies, one focusing on life sciences and one on its industrial chemicals activities. Hoechst said in a statement the two companies would be called Hoechst AG and Celanese AG, with Hoechst concentrating on life sciences and Celanese on industrial chemicals. Hoechst also said it would initially retain, but aimed to sell eventually, its shareholdings in industrial businesses such as Clariant (45 per cent), Dyneon (46 per cent), DyStar (50 per cent), Messer (66.66 per cent), Targor (50 per cent), Tespaphan (100 per cent) and Wacker (50 per cent).
"Hoechst AG will divest these holdings when it is possible to realise the appropriate value for shareholders," the group said in a statement. The new Celanese will comprise Hoechst units Celanese and Ticona as well as other businesses, and applications will be made to list its shares in Frankfurt and on the New York Stock Exchange.
Hoechst AG shares will continue to betraded in Frankfurt, New York and a further 15 stock exchanges. Hoechst said it had called an extraordinary shareholders meeting for January 22 to approve the demerger which, if approved, would take legal effect at the end of March, with retroactive effect for accounting purposes as of November 1, 1998.
"There will be no change in the subscribed capital and additional paid-in capital of Hoechst AG," Hoechst said.
"Hoechst shareholders will retain their Hoechst shares and will receive one Celanese share for every 10 Hoechst shares they own." Hoechst also said no profits would be realised as a result of the demerger as it would be effected at book values in the financial statements of Hoechst AG.
"The demerger will create an independent company which is a global leader, both in terms of its key products and its production technology," said Claudio Sonder, management board member of Hoechst AG and the designated chief executive of Celanese.
"Innovation, the efficient allocation of resources, and acorporate strategy which focuses on growth in selected areas, will be the hallmarks of the new company."
The core business of Celanese AG will be: Acetyl chain products, used in the production of paints, plastics, textiles and adhesives. Chemical intermediates, such as acrylic acid, acrylates, oxo products, amines and catalysts, used by a broad range of customers in the manufacture of both industrial and consumer products.
Ticona is one of the world's leading producers of technical polymers. Celanese will also hold a number of investments such as Celgard (separation products), Thermphos (phosphorous and phosphorous derivatives), and Vinnolit, the PVC joint venture with Wacker and InfraServ Verwaltungs GmbH.
The new Hoechst AG will mainly comprise pharmaceutical company Hoechst Marion Roussel, crop production and crop protection company Hoechst Schering Agrevo and animal health company Hoechst Roussel Vet.
It will continue to participate in a number of joint ventures and hold various equityinvestments, including the life sciences activities of Dade Behring diagnostics (Hoechst share 32.5 per cent), Centeon plasma products (Hoechst share 50 per cent) and Nutrinova food ingredients (Hoechst share 100 per cent).
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
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This story was printed from Net Express located at http://www.expressindia.com. Net Express provides a portal to India, with news from The Indian Express and The Financial Express along with sites on travel and tourism, the entertainment industry, the power sector, the environment and much more.
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