Nova shareholders approve purchase by Abu Dhabi

Nova Chemicals Corp.’s shareholders have approved a deal which will see the Pittsburgh-based maker of polyethylene, polystyrene and chemical feedstocks acquired by a Middle Eastern energy firm for approximately US$500 million.

More than 98 per cent of Nova shareholders approved the deal with International Petroleum Investment Corp. (IPIC) of Abu Dhabi, United Arab Emirates.

IPIC officials have said they have no major changes planned to Nova’s management team or to the daily operations of the firm, which employs 3,300 and had annual sales of almost US$7.4 billion in 2008. Nova employs about 250 workers at its Pittsburgh headquarters, and 350 at an office and two research labs in Calgary, Alta.

Under the terms of the deal, announced in early February, the acquisition price is about US$6 per share.  

As of May 1, Chris Pappas has replaced Jeff Lipton as the firm’s CEO.

Nova lost US$214 million in the fourth quarter of 2008, cancelling previous gains and leaving the firm with a loss of US$48 million for full-year 2008. Fourth-quarter sales fell 36 per cent to less than US$1.2 billion when compared to the same quarter in 2007.

Founded in 1984, IPIC is a state-owned enterprise responsible for energy investments outside of Abu Dhabi. The firm has more than US$14 billion in assets, including stakes of 64 per cent in polyolefins maker Borealis AG of Vienna, Austria, and of 20 per cent in PP producer Oman Polypropylene LLC of Oman.