DuPont to spin off high end chemicals unit
The largest chemicals maker in the United States in terms of value, Dupont Co., had laid out plans to spin off its performance chemicals unit in order to boost shareholder value and focus on high revenue businesses.
The spinoff would be tax free and would be completed by 18 months. At that point, DuPont investors would own shares of the company, in a statement from its Wilmington, DE headquarters. The company is projecting costs to be at USD0.01 to USD0.02 per share by the fourth quarter.
DuPont had announced back in July of the said spin off because of its slow and volatile earnings. The company is the largest producer of titanium oxide in the world, which is used in paints. Other products of the firm include cyanide, freon refrigerants and Teflon coating for non stick kitchenware.
The announcement was made by DuPont after regular trading hours ended in New York, as shares jumped 3.5% to USD63.51 as of late afternoon trading. For the year, the shares had climbed 36% for 2013.