Solvay On the road to separation
Solvay is progressing on the road to separation. While Solvay starts the separation process with a strong balance sheet of 1.0x net debt/EBITDA, the recently disclosed targeted capital structures show that EssentialCo will have a slightly higher leverage than SpecialtyCo, which takes into account the higher growth prospects and capex needs for the latter. Despite higher than previously expected separation costs and a tougher trading momentum, we still believe the separation will be an important catalyst to unlock shareholder value. With both our DCF and SOTP model yielding a fair value of more than 50% above the current share price, we reiterate our BUY rating on Solvay, with TP maintained at € 155.Solvay is engaged in chemical and plastic businesses worldwide. Co. offers chemical products such as advanced materials, barium strontium, calcium chloride, caustic soda, chlorinated products, fluor, peroxygen products, polyglycerols, precipitated calcium carbonate, soda ash, and sodium bicarbonate. It also provides specialty polymers, such as Spire ultra polymers, Solviva biomaterials, and sulfone polymers. Co. structures its activities around five operating segments: Advanced Formulations, Advanced Materials, Performance Chemicals, Functional Polymers and Corporate & Business Services, each with its own specific business model and each comprised of Global Business Units (GBUs).
We are a financial services provider for several types of professional clients, each with distinct needs.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.