ICI may sell PU unit to US firm for Rs 82.5 cr
AGENCIES

New Delhi, Nov 20: ICI India Ltd today decided to sell its cash-cow polyurethanes (PU) business for Rs 82.5 crore to US-based Huntsman Corporation by March 2001 following parent company ICI Plc’s sell-off of the global PU business to the US company. The board of directors of ICI India, which met today, also decided to transfer the motor and industrial (M&I) paints business to a joint venture company of ICI India and Berger Paints India Ltd.

Both the decisions would be placed before shareholders for their approval at an extra-ordinary general meeting proposed to be held on December 15. “Subject to necessary approvals, ICI India has agreed to transfer its PU business as a going concern to a wholly-owned subsidiary of Huntsman Corporation or its affiliate to be incorporated in India at a consideration of Rs 82.5 crore,” a company release said, adding the transactions are expected to be completed by March 2001.

The Rs 82.5 crore includes a sum of Rs 10 crore payable over a period of three years, depending on performance of the PU business. The Indian arm of Imperial Chemical Industries Plc has, however, made provisions that existing employees will continue their service in the new company and on terms “no less favourable than those prevailing on that date”.

The company posted a revenue of Rs 98 crore from the PU business and has been the market leader in the segment.

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