DC Chemical to sell stake in Columbian Chemicals

ERJ staff report (DS)

Seoul, Korea -- DC Chemical intends to sell its entire stake in the carbon black maker, Columbian Chemical Holding LLC. The company said in a stock market filing that it plans to sell almost 257 million shares with a nominal value of almost Won 189000 million (Euro 106 million). Press reports indicated that its joint venture partner, One Equity Partners would buy the entire stake. One Equity did not respond to emails or phone calls.

In 2006 DC Chemical acquired a 66.75 percent stake in Columbian, while One equity took the remaining 32.75 percent. The combined acquisition price from Phelps Dodge Corp was $600 million, suggesting that DC made a loss of around Euro 200 million on the deal.

In its statement, DC Chemical said it would use the proceeds to, "focus on core strategic businesses, mitigate global risks and reduce external debt." The company also noted that the deal would solve an anti-trust issue raised by the Korea Fair Trade Commission pursuant to the Monopoly Regulation and Fair Trade Act.

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Stock Market announcement from DC Chemical.

Phelps Dodge completes sale of Columbian to Korean company ERJ (March 2006)

One Equity Buying Columbian Chemicals from DC Chemical PE Hub (US)

DC unloads stake in Columbian JoonAng Daily (Korea)