Unipetrol reported on Monday it has begun exclusive talks with Poland's Dwory to sell off its synthetic rubber maker Kaucuk. The company requests from the buyer to contract on long-term raw material supply and purchase. Unipetrol hopes to finalize the deal by September.
Our view:
The announcement came as no surprise to the market after the company reported a week ago that Dwory and Ciech are both interested in buying the synthetic rubber producer subsidiary of Unipetrol. Our valuation on Kaucuk puts some US$ 105m for its equity value. We consider the news as slightly positive for Unipetrol, since the selloff of non-core assets are part of the restructuring program. We believe that reinvesting the money at other area of the business could be favourable for investors.