South African take over
By Patrick Raleigh, UT On-line/news editor
Johannesburg, South Africa-Chemical Services Ltd (Chemserve)-parent of Industrial Urethanes, which supplies PU raw materials and systems-has delisted from South Africa’s JSE Securities Exchange. The move, which took effect on 17 Dec 2003, followed the acquisition of all outstanding shares in Chemserve by the firm’s majority shareholder AECI.
The deal will enable AECI to better manage its cash position and fully integrate Chemserve into a much larger listed group, according to Neale Axelson, AECI’s chief financial officer, in a press statement. AECI previously held 74 percent of Chemserve’s shares.
Chemserve, which reported 2002 sales of Rand3037 million ($413 million) and trading profits of Rand318 million, claims to be the largest speciality chemicals supplier in southern Africa. The 1700-employee company is a significant player in the polyurethanes sector via its Industrial Urethanes subsidiary.
Industrial Urethanes supplies PU raw materials and systems for the automotive, mining, appliance, construction, footwear, commodity and other industries. With operations at two locations in South Africa, Umbogintwini and Sebenza, the firm licenses technology from Huntsman Polyurethanes and Dow Chemical Co., according to information on Chemserve’s website.
As well as Chemserve, AECI operates mining solutions (explosives), speciality fibre, decorative coatings and property management divisions. The group employs around 8000 and reported a net trading profit of Rand698 million in 2002, on sales of Rand7818 million.”