Solvay SA (SOLB.BR) And Syensqo (SYENS) Complete Their Separation.

Solvay SA, the world’s largest producer of soda ash, has successfully separated their value added materials business, which trades under the name of Syensqo.

Solvay shareholders, at the time of demerger, will receive shares in Syensqo pro rata to their shareholding in Solvay SA. The shares of each company will be listed on Euronext Brussels and Euronext Paris.

Pre-separation, at the end of November, the shares of Solvay were selling for a share price of 108.6 EU. The spinoff of Syensqo is now listed on the Euronext and today is selling for 105.32 EU. As the Solvay stub is priced at 22.14 EU, it may be stated, more or less, that the stub, which is, in my view, the legitimate prize for participation in this business separation, has been earned largely free of charge.

Given the significant free cash forecast to be generated, contrasted against low ongoing capital requirements to be expensed, at Solvay’s soda ash business, I would be looking for the company to expand its operations via brownfield development, by other means, or, more likely, via an “all of the above” growth program.

https://news.bloomberglaw.com/mergers-and-acquisitions/syensqo-and-solvays-1-7-billion-surge-makes-case-for-spinoffs

https://www.syensqo.com/en/investors/spinoff/documents