Adhesives & Sealants Headlines / Mergers/Acquisitions / Raw Materials and Chemicals

Kraton Board to Withdraw Recommendation to Combine with LCY’s SBC Business

July 8, 2014
/ Print / Reprints /
/ Text Size+

Kraton Performance Polymers Inc. recently announced it has notified Taiwan-based LCY Chemical Corp. that its Board of Directors intends to withdraw its recommendation that Kraton stockholders approve the previously announced combination agreement under which Kraton would combine with LCY’s styrenic block copolymer (SBC) operations. Before the Kraton Board changes its recommendation, Kraton is reportedly required by the Combination Agreement to provide LCY with at least five business days’ written notice of the intention to withdraw or change its recommendation. During these five business days, if requested by LCY, Kraton must negotiate in good faith with LCY regarding any revisions or adjustments proposed by LCY to the terms and conditions of the Combination Agreement that would enable the Kraton Board to continue to recommend to Kraton stockholders the approval and adoption of the Combination Agreement, as so revised or adjusted.

Under the Combination Agreement, which will remain in effect unless and until it is terminated in accordance with its terms, the Kraton Board may withdraw or change its recommendation in certain circumstances upon the occurrence of certain intervening events since the agreement was signed on January 28. The notice from the Kraton Board cited the decline in the operating results for the LCY SBC business in the first quarter of 2014 and the related decline in its forecasted results thereafter, as Kraton discussed in an SEC filing on Form 8-K on June 24, 2014, together with the related decline in Kraton’s stock price and negative reactions from stockholders following the June 24 disclosure.

LCY and Kraton may engage in negotiations to determine whether they can mutually agree to changes in the terms of the combination agreement, as this would enable the Kraton Board to continue to recommend the transaction to its stockholders.

For more information, visit

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.



Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!


ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI October 2014 cover

2014 October

You won't want to miss our October issue: industry trends from the ASC, converting and packaging, testing, a preview of The Assembly Show, and more!

Table Of Contents Subscribe


Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px