Indorama Ventures Public Company Limited (SET: IVL) notified the Stock Exchange of Thailand on Friday that it through its affiliate, Indorama Netherlands B.V., has entered into the Agreement for the Sale and Purchase of participation in UCY Polymers CZ s.r.o. (UCY) in Czech Republic, and the Shareholders’ Agreement with Maximilian Josef Söllner and such Transaction was completed on 18 February 2022.
The Board of Directors at the Meeting held on November 12, 2021 has passed the resolution to approve the acquisition of an equity stake of 85% in UCY, a limited liability company, incorporated under the laws of the Czech Republic.
UCY is a leading PET recycler in the Czech Republic who processes post-consumer PET into Recycled Polyethylene Terephthalate (rPET) flakes with a total capacity of approx. 40,000 tonnes/annum.
This acquisition is a strategic fit for IVL as a backward integration into the company’s expanding rPET footprint in Europe and across the world to secure feedstock for rPET products. IVL is committed to increasing its recycling capacity to 750,000 tons per year by 2025, with a total US$1.5 billion investment to achieve its sustainability goals.
The total value of consideration for the acquisition of an equity stake of 85% in UCY is approx. EUR 6.8 Million (equivalent to approx. Thai Baht 257,317,440), which will be further adjusted in accordance with the terms stipulated under the Agreement for the Sale and Purchase of participation in UCY. The amount shall be paid in cash.