Solvay announces leadership teams ahead of planned split
Reuters
Published Nov 03, 2023 09:12
By Olivier Cherfan and PierreJohn Felcenloben
(Reuters) - Solvay (EBR:SOLB) on Friday announced new leadership teams to be appointed upon its planned split, after the Belgian chemicals producer's third-quarter sales slumped on lower volumes.
Shareholders will vote on the proposed split into two listed entities on Dec. 8. The de-merger would lead to the creation of specialty chemicals-focused Syensqo, while a company retaining the Solvay name and listing would focus on essential chemicals.
Ilham Kadri, current chief executive of Solvay, will become the CEO of Syensqo, while Philippe Kehren will take the top position at the new Solvay, the company said.
The group, whose products include base chemicals such as soda ash and specialty polymers used in batteries, said that pending shareholders' approval, Syensqo would start trading on Dec. 11.
Kadri said in a post-earnings call the new management teams "would defend their equities stories" in front of investors during the group's Capital Markets Day on Nov. 13, when it will also unveil a roadmap for the new entities starting from 2024.
Finance chief Karim Hajjar was not included in either entity's leadership, and Solvay confirmed to Reuters via email he would be leaving the company after the split.
Solvay's sales fell 20.3% organically to 2.75 billion euros ($2.92 billion) in the third quarter, below analysts' estimate of 3.03 billion in a company-compiled consensus, as a weakened economy weighed on volumes across its markets.
Solvay said it expected 2023 core earnings (EBITDA) to be at the lower end of its prior guidance of between a decline of 5% and an increase of 2%.
Quarterly underlying EBITDA declined 18.5% organically to 702 million euros, 3% ahead of expectations. Its EBITDA margin was slightly up at 25.6%.
"We are very focused on the bottom line, and cash, that's what creates the value," Hajjar said in the media call.
Shares in Solvay were down 2.2% at 0847 GMT.
($1 = 0.9406 euros)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.