According to JoongAng Daily, Korea’s DC Chemical plans to sell its 66.8% stake in Columbian Chemicals Company, the world’s third largest producer of carbon black. DC Chemical will sell the stake for 188.9 billion won ($150 million) in the first quarter of 2009 to JPMorgan Chase’s One Equity Partners LLC, which already owns 33% of Columbian.
DC disclosed the news in a regulatory filing on January 2. DC is selling the stake in order to reduce risk and focus on its polysilicon business. Proceeds will be used to reduce debt and fund capital investments. DC Chemical and One Equity Partners bought Columbian Chemicals in 2006 from its former parent, Phelps Dodge. Aside from its ownership in Columbian, DC Chemical also operates two carbon black plants of its own.
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