Yantai, Shandong – Wanhua Chemical announced on December 6 that its parent company, Wanhua Industrial Group, is planning ‘separation and overall listing’.
The announcement on the Shanghai Stock Exchange gave no further information.
Trading in Wanhua Chemical’s shares on the Shanghai Stock Exchange was suspended on December 5.
The company said it will decide on whether the parent company’s transaction constitutes ‘major assets reorganization’ for the listed arm within ten days from the suspension, and then take further action.
Wanhua Industrial has been Wanhua Chemical’s largest shareholder, with a 48% stake, and also owns 96% of Hungarian’s MDI and TDI maker Borsodchem.
Local reports predict Borsodchem is likely to be absorbed by Wanhua Chemical to scale up the businesses, as well as put an end to the two subsidiaries’ horizontal competition, a problem that Wanhua Chemical pledged to solve by the end of 2018 in a statement this April.
In 2016 Borsodchem made EUR 96m profit, its TDI products having record high profitability because of lowered oil and natural gas prices and its competitors announcing force majeure, said the April statement.
According to the 2016 Annual report of Wanhua Chemical, its parent is Wanhua Industrial Group, and Yantai State Owned Assets Supervision and Administration Commission is the ultimate holding party of the Company.