Part-built desal facility in Texas, US, sold to polymers joint venture
A newly formed joint venture, Corpus Christi Polymers (CCP), is to acquire a part-built PTA-PET factory and desalination plant in Texas, US, from M&G USA and its affiliated debtors.
The industrial site, including a part-built desalination plant, was put on the market when M&G Chemcials filed for Chapter 11 bankruptcy in October 2017.
Port of Corpus Christi, Texas, voted to bid for the desalination facility as a standalone deal, in January 2018, to help support expansion of the local economy.
However, the joint venture of Mexico’s Alpek, Indorama of Thailand, and Far Eastern Investment, based in Bermuda, will now acquire the entire site for $1.126 billion, and will share equally the outputs of PTA (purified terephthalic acid) and PET (polythylene terephthalate).
Joint venture CCP will complete the plant, which is to be the largest PTA-PET production facility in the world, and the largest PET plant in the Americas.
PJT Partners is financial advisor, and Weil, Gotshal & Manges is legal advisor, to Alpek. HSBC is financial advisor, and Lowenstein Sandler is legal advisor, to Indorama. Morgan Stanely is financial advisor, and Duane Morris is legal advisor to Far Eastern.