Reuters reports:
FRANKFURT – BASF (BASFn.DE), is planning a partial listing of its agricultural business because the stock market is underestimating the unit’s earnings prospects within the group, the German chemicals giant’s new CEO told staff on Wednesday.
Markus Kamieth also said on a global call that BASF would consider strategic options for its coatings business, which mainly caters to the car industry, including a potential joint venture or looking into having a different owner for the unit, according to a recording of the call made available to Reuters.
Both businesses are highly successful earnings and cash flow generators, but “the capital market views it differently sometimes and they are undervalued as part of BASF”, Kamieth added.
A person familiar with the matter told Reuters that BASF did not have any potential buyers for the coatings business lined up. BASF, which is due to hold a capital markets day on Thursday, declined to comment.
Kamieth has continued his predecessor’s push to cut costs in Europe and reduce the group’s reliance on subdued markets there, while building a 10-billion-euro ($11 billion) chemical complex in southern China to tap into faster growth in Asia.
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