Russia’s Sibur and TAIF on Friday entered the final stages of merging their petrochemical businesses as they gear up for an eventual initial public offering (IPO) of the combined entity.
Dmitry Konov, head of Sibur Holding’s management board, said the IPO is still in the pipeline, although the merger has held back the plans.
The merger to create one of world’s top five producers of polyolefin and rubber products was announced in April.
“We do hope that the combined entity will be able to (implement) the synergies which we see. Also the value which it brings to the current shareholders will be greater… and the combined entity could become, let’s say, more interesting to public investors,” he told reporters.
“So we still do hope that we will become a public company and it still remains an ambition for the shareholders.”
Privately owned Sibur, the largest petrochemicals producer in eastern Europe, has said existing TAIF shareholders will receive a 15% stake in PJSC Sibur Holding in exchange for transferring a controlling interest in TAIF’s group of petrochemical and energy firms.
Leonid Mikhelson, one of Russia’s richest businessmen and the head of gas producer Novatek will obtain 30.6% in the newly created company, while Gennady Timchenko, a billionaire friend of Russian President Vladimir Putin, will control a 14.5% stake.
Both businessmen are existing shareholders of Sibur, which has long planned to place its shares on the market.
The companies plan to complete the merger by the end of the year.
Source: Reuters.com