Abu Dhabi Group To Acquire Nova Chemicals


one of the world’sleading producers of polyethylene
The Canadian petrochemical group Nova Chemicals, one of the world’sleading producers of polyethylene, and the International PetroleumInvestment Corporation (IPIC) of Abu Dhabi have entered into anagreement for the acquisition by IPIC of all Nova’s outstanding commonshares for a cash consideration of US$ 6 per share, which represents a348 per cent premium over the closing share price on the NYSE as onFebruary 20, 2009 and a 204 per cent premium over the combined andcurrency-adjusted 30-day volume-weighted average price of the shares onthe Toronto Stock Exchange and the NYSE up to and including February20, 2009. The deal is valued at about US$ 2.3 billion including theassumption of net debt obligations. IPIC’s subsidiary Adnoc also holdsa 64 per cent share in Vienna-based polyolefins major Borealis.
Nova’s operations are primarily based in North America whereas IPIC’s petrochemicals sites are located in Europe, Asia and the Middle East and the deal will provide an ideal match for both companies. Under the arrangement, Nova Chemicals will operate as an independent chemicals and plastics company and continue to invest substantially in its Alberta and Ontario operating facilities and in its R&D facilities in Calgary, Alberta.

The arrangement is intended to enable Nova Chemicals to meet all its financial obligations and includes an agreement for IPIC to make available a US$ 250 million credit backstop facility to provide Nova Chemicals with sufficient liquidity.

According to Chris Pappas, President and COO of Nova Chemicals – who is expected to remain with the company as CEO upon the retirement of current incumbent Jeff Lipton on May 1, 2009, “Working with IPIC will enable Nova Chemicals to continue to build on our world class technology and take it around the world. This arrangement is a good opportunity for our employees and our customers to grow our business.”

The Covid-19 pandemic led to the country-wide lockdown on 25 March 2020. It will be two years tomorrow as I write this. What have we learned in this time? Maybe the meaning of resilience since small companies like us have had to rely on our resources and the forbearance of our employees as we have struggled to produce our trade platforms.

The print and packaging industries have been fortunate, although the commercial printing industry is still to recover. We have learned more about the digital transformation that affects commercial printing and packaging. Ultimately digital will help print grow in a country where we are still far behind in our paper and print consumption and where digital is a leapfrog technology that will only increase the demand for print in the foreseeable future.

Web analytics show that we now have readership in North America and Europe amongst the 90 countries where our five platforms reach. Our traffic which more than doubled in 2020, has at times gone up by another 50% in 2021. And advertising which had fallen to pieces in 2020 and 2021, has started its return since January 2022.

As the economy approaches real growth with unevenness and shortages a given, we are looking forward to the PrintPack India exhibition in Greater Noida. We are again appointed to produce the Show Daily on all five days of the show from 26 to 30 May 2022.

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