LyondellBasell sells Argentine polypropylene unit Petroken to YPF-led group

Argentina's state-run energy company YPF and Grupo Inversor Petroquimica S.L. have accepted an offer to purchase LyondellBasell's Argentina-based, wholly-owned subsidiary Petroken, officials announced on Tuesday.

The sale is expected to close in late 2015 following Brazilian antitrust authority (CADE) approval. The transaction is valued at $145 million on a debt and cash free basis. Based on working capital estimates as of June 30, 2015, expected cash proceeds are $162 million.  

Petroken operates a 180,000 tpy polypropylene (PP) plant in Ensenada and is a leading polypropylene producer in Argentina.

"As part of our long-term growth strategy, we will continue to focus on regions and assets that will have the greatest impact on value-creation for our shareholders," said Tim Roberts, executive vice president of LyondellBasell's global olefins and polyolefins business.

Until closing, Petroken will continue to provide the same level of support, service and high quality products to its customers.