• Transaction / Assets
    CGD Sells Artland Petrochemical
  • Seller
    CGD
  • Buyer
    Indorama Ventures
  • € MM
    28

CGD sells Artland to Thai Indorama Ventures for €28 million

14 November 2017

The Caixa Geral de Depósitos (CGD) sold Artlant – the bankrupted Sines petrochemical plant to which it lent more than 500 million euros – to the Thai group Indorama Ventures. The deal was for 28 million euros.

“Caixa welcomes the announcement of the acquisition of Artlant, a major chemical company in the Sines area, by a world leader in the petrochemical industry.” This was CGD’s reaction to the sale of Artlant to the Thai petrochemical company Indorama Ventures. “Caixa has never failed to support the continued operation of this factory, as well as the maintenance of more than a hundred direct jobs, during these last years in which the company has experienced serious difficulties,” the bank added in a statement.

Although the amount of the transaction was not disclosed, the ECO newspaper reported that Indorama paid €28 million to the Portuguese state bank. The amount will not compensate CGD’s investments, which ran to the tune of roughly 500 million euros (which will now go unpaid).

For the state bank, Negócios reported, the sale of the complex is “important for the country, because the company is a major exporter, with the capacity to export up to 700,000 tons of purified terephthalic acid (PTA), with an impact on GDP growth.”

It should be remembered that Artlant was declared bankrupt by the Judicial Court of the Region of Lisbon at the end of July, two years after having entered the Special Revitalization Process (PER). According to a provisional list of Artland’s creditors, published in the Citius portal, CGD had the highest amount of outstanding loans: totalling 520,660,890.77 euros.

Original Story: Idealista

Translation: Richard Turner