Westlake Chemical: Bullish Picture Remains Intact
Tide Is Going Out, But Westlake Is Wearing Shorts
Darspal S Mann • 14 Comments
Darspal S Mann • 14 Comments
Yesterday, 5:35 PM
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Mon, Jul. 18, 11:25 AM
- Westlake Chemical (WLK -1.1%) says it is restarting its Calvert City, Ky., petrochemical complex after an unexpected shutdown on June 1 caused by a mechanical failure of its ethylene unit which resulted in a complete outage of the complex.
- WLK says the shutdown will hit Q2 and Q3 earnings by ~$40M, and will report the financial loss through a force majeure declaration.
- WLK plans to expand the plant by adding 70M lbs./year of capacity to produce ethylene; the project is expected to be completed by mid-2017.
Fri, Jun. 10, 9:44 AM
- Westlake Chemical (WLK +2.3%) agrees to acquire Axiall (AXLL +25.7%) for $33/share, a 28% premium to yesterday's closing price, representing an enterprise value of ~$3.8B including debt.
- The combined company will be the third-largest chlor-alkali producer and the second-largest PVC producer in North America, with expected combined pro forma revenues of $7.6B and EBITDA of $1.5B for the 12 months ended Q1 2016.
- WLK expects the transaction to be accretive to its earnings in the first year following the close and expects ~$100M in annualized cost synergies.
- AXLL had rejected two earlier offers from WLK, including a sweetened bid in early April of $23.35/share in cash and stock, and South Korea’s Lotte Chemical said earlier this week that it had made a bid.
Tue, Jun. 7, 7:59 AM
- Axiall (NYSE:AXLL) +6.2% premarket after South Korea's Lotte Chemical says it has submitted a takeover bid for the U.S. chemicals company; the terms of the bid are not known.
- The move sets up Lotte as a potential white knight for AXLL, which is trying to fight off a takeover attempt by Westlake Chemical (NYSE:WLK); AXLL this year has rejected two unsolicited bids from WLK, which has launched a proxy fight and is urging approval of its slate of candidates to replace AXLL's board at the June 17 annual shareholder meeting.
- Lotte formed a venture with AXLL last year to build a plant for making ethylene in the U.S. with production to start in 2018.
Mon, May 23, 12:59 PM
- Axiall (AXLL +2.9%) is higher after expressing an openness to consider a revised takeover offer from Westlake Chemical (WLK -0.1%).
- WLK says it will either submit a new offer or reaffirm its previous $1.6B bid at $23.35/share after AXLL CFO Gregory Thompson asked for the company to submit a new offer by June 3, in advance of AXLL’s June 17 shareholders meeting.
- WLK says it will continue to proceed with its current proxy contest to replace AXLL's board.
- Now read Westlake will work for longs
Tue, May 10, 5:37 PM
Tue, May 3, 6:36 AM
Mon, May 2, 5:30 PM
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Mon, Apr. 25, 3:48 PM
- Westlake Chemical (WLK -1.8%) nominates nine candidates to replace Axiall's (AXLL -1.4%) board, saying the current board’s rejection of its improved takeover offer three weeks ago is not in the best interests of shareholders.
- WLK says AXLL's "track record of value destruction and underperformance, repeated failed attempts to deliver on expectations, and in-process initiatives" are unlikely to generate value creation "anywhere near" that of its proposal.
- WLK also says AXLL has not yet set a date for its annual meeting and tha the company may seek to delay the meeting and an opportunity for AXLL shareholders to voice their concerns in a formal manner.
- Now read Axiall investors need to consider Westlake Chemical's interest
Fri, Apr. 22, 5:39 PM
Mon, Apr. 4, 8:25 AM
- Westlake Chemical (NYSE:WLK) says it has increased its offer to acquire Axiall (NYSE:AXLL) to $23.35/share, comprised of $14 in cash and 0.1967 per WLK share, a 143% premium to AXLL's $9.60 closing price on Jan. 22, the final trading day before WLK's initial proposal.
- WLK says its revised offer, which values the deal at ~$3.1B including ~$1.5B of debt, was summarily rejected by AXLL's board.
- WLK says it will file preliminary proxy materials with the SEC and solicit proxies to elect an alternate slate of 10 directors to the AXLL board.
- Now read Axiall upgraded at Cowen, which expects increased bid from Westlake
Thu, Mar. 10, 3:19 PM
- Axiall (AXLL +2%) is upgraded to Outperform from Market Perform with a $25 price target, up from $17, at Cowen, which expects Westlake Chemical (WLK +1.5%) will raise its takeover bid to at least $25 or that AXLL's actions will enhance a combination at a later date.
- Cowen also thinks AXLL, excluding its building products business, could bring additional bidder interest due to its "pure play status.”
- The firm believes AXLL’s FY 2017 EPS are set to increase by $0.54 in case of a $25/share offer and by $0.45 in case of a $30/share offer, assuming annual synergies of $60M.
Mon, Mar. 7, 12:28 PM
- Westlake Chemical (WLK +0.2%) again reaches out to Axiall (AXLL +0.9%) shareholders in a bid to jump-start negotiations for its proposed corporate takeover.
- In a letter, WLK CEO Albert Chao urges AXLL shareholders to encourage their company to enter into discussions with WLK concerning its proposal to acquire AXLL for $20/share (comprised of $11 in cash and 0.1967 of a WLK share, which represented a value of $9 based on WLK's closing price on Jan. 22, the last trading day before the proposal).
- Chao touts the deal as an opportunity to create one of the leading manufacturers of olefins, chlorine and vinyl building materials.
Tue, Feb. 23, 6:41 AM
Mon, Feb. 22, 5:30 PM
Thu, Feb. 18, 5:02 PM
Westlake Chemical Corp. manufactures and markets petrochemicals, polymers and fabricated building products. It operates its business through two segments: Olefins and Vinyls. The Olefins segment manufactures and markets ethylene, polyethylene, styrene and associated co-products. The Vinyls... More
Sector: Basic Materials
Industry: Specialty Chemicals
Country: United States
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