KKR-led consortium closes $1.56 bln buy of LCY Chemical

A KKR-led consortium has completed its buy of LCY Chemical Corp for $1.56 billion. The deal was announced in July. LCY, of Taipei, is a petrochemicals company.

PRESS RELEASE

TAIPEI –January 30, 2019 – LCY Chemical Corp. (“LCY” or the “Company”) and global investment firm KKR today announced the completion of the previously announced share exchange and purchase transaction under which the KKR-led consortium has acquired all of the issued and outstanding shares of LCY, for TWD 56 per share in cash, adjusted to include a TWD 2.90 per share dividend (rounded to the nearest TWD 0.01) (ex-dividend offer price is TWD 53.10 per share), representing a total market capitalization of approximately TWD 47.8 billion (USD 1.56 billion).

As a result of the completion of the share exchange and purchase, LCY becomes a private company and was delisted from the Taiwan Stock Exchange.

TH Hong, Chairman of LCY, said, “We are thrilled to embark on the next stage of LCY’s growth by welcoming KKR as a long-term partner. KKR has a demonstrated track record of supporting the growth and success of companies globally and we want to leverage their expertise to accelerate our strategy and enable us to better anticipate and meet the evolving needs of our customers in Taiwan and worldwide.”

Paul Yang, Member and Head of KKR Greater China, added, “LCY is a truly differentiated, high-performing company in the field of petrochemicals, with a strong team that is dedicated to quality and innovation. We are excited to support LCY as a constructive partner to enhance the Company’s strategy and competitive strength by investing in its people and facilities in Taiwan and overseas.”

LCY will maintain its corporate headquarters in Taipei, its existing global distribution and sales networks and its production plants in Taiwan, mainland China and the United States. KKR made its investment from its Asian Fund III.