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Bullboard - Stock Discussion Forum CANEXUS CORP 6.5 PCT DEBS T.CUS.DB.D

TSX:CUS.DB.D - Post Discussion

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Post by ocean112 on Mar 27, 2015 12:07pm

FYI

This may add some color why Olin approached Canexus on acquiring Chlor Alakali facility....(recall they received inbound calls per the Whistler conference).  Make your own conclusions - but this would seem like a win-win deal for both parties.

_____

Olin to close part of its Canada chlor-alkali production site

10:36 AM MST | December 12, 2014 | Francinia Protti-Alvarez

Olin plans to close permanently the portion of the company's Becancour, PQ, chlor-alkali facility that has been idle since late June, when an explosion occurred at the site. The facility's chlor-alkali capacity will decrease by 185,000 m.t./year, Olin says. The plant will predominately focus on bleach and hydrochloric acid—which it considers to be value-added products—as well as caustic soda. The Becancour site had, prior to the announcement, capacity to produce 329,000 m.t./year of chlorine and 362,000 m.t./year of caustic soda, in addition to 75,000 m.t./year of hydrochloric acid, according to IHS Chemical data.

Olin will incur approximately $10 million of additional pretax restructuring charges in its fourth-quarter accounts to cover the closure. These charges include asset write-offs, employee-related costs, and contract terminations, the company says. The restructuring charges were not included in Olin's fourth-quarter earnings guidance provided on 23 October. 
Comment by HAWK37 on Mar 27, 2015 2:59pm
Ocean112, Regarding Olin buying Canexus Chlor-Alkali (CA) Business: yet another stupid comment (you management at Canexus?). 1. Olin just bought a CA business from DOW for $5 billion (announced today). Me thinks they will be busy for a while, 2. Olin paid 5 times EBITDA. You keep saying Canexus CA business is worth 10 times. The market speaks., 3. CA facilities have a tendency to explode. You ...more  
Comment by BlueCollar51 on Mar 27, 2015 8:44pm
HAWK37 wrote: Ocean112, Regarding Olin buying Canexus Chlor-Alkali (CA) Business: yet another stupid comment (you management at Canexus?). 1. Olin just bought a CA business from DOW for $5 billion (announced today). Me thinks they will be busy for a while, 2. Olin paid 5 times EBITDA. You keep saying Canexus CA business is worth 10 times. The market speaks., 3. CA facilities have a tendency to ...more  
Comment by HAWK37 on Mar 27, 2015 9:57pm
Fair point BUT the buyer paid 7.8 times trailing EBITDA so that's the starting point (to assign any value to the tax benefits to the seller is plain wrong). Canexus trailing EBITDA was $61 million so we can assume trailing EBITDA on the CA business would be less than $25 million. Even at 8 times, its worth less than $200 million. and the main point is, Olin won't be buying anything else in ...more  
Comment by ocean112 on Mar 28, 2015 9:02am
didn`t realize Hawk posted a comment (he`s on my delete list - just another alias for Kherson).  What Olin would be buying is not just another chlor alkali plant - but a strategically located facility with a 45%-50% market share in western Canada positioned to recapture oil growth in the coming 10 years as oil eventually stabilizes.   Doug doesn't seem to be budging - he's ...more  
Comment by leo101 on Mar 28, 2015 12:33pm
Comment by BlueCollar51 on Mar 28, 2015 12:35pm
ocean; I doubt that HAWK and Kherson are the same person. HAWK is clearly negatively biased but he does appear to be rational and attempts to back his opinion up with something resembling “financial analysis” which can be debated. Kherson on the other hand does what he does and I will leave it at that.   Different opinions make a market. Unfortunately all too often “different opinions” on ...more  
Comment by Kherson on Jun 11, 2015 8:57pm
$250 million for Blunderheim? Too funny... Kherson
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