Summary: Hexion gets $540M to aid Huntsman buyout
Thursday October 9, 2:08 pm ET
Summary: Apollo puts up $540M to help Hexion close $6.5B buyout of Huntsman
WHAT HAPPENED: Hexion Specialty Chemicals received a $540 million pledge from parent Apollo Management LP to help it close its fiercely contested takeover of Huntsman Corp.
THE REASON: Hexion tried to walk away from the $6.5 billion takeover agreed to last summer, citing Huntsman's deteriorating finances. But a Delaware judge said last month Hexion couldn't jettison the deal, and ordered the company to rework a financing package if necessary. The $540 million helps Hexion comply with the court rulings.
NEXT STEPS: Hexion said it is "proceeding expeditiously" to close the deal and is in ongoing discussions with Huntsman regarding a wide range of matters relating to the closing. Apollo said it will waive its contractual fee and suspend monitoring fees for three years, provided the deal goes through.
Source: Associated Press
Engineering News Archive