Kraton Receives Notice Of Termination Of Combination Agreement From LCY

(RTTNews) - Kraton Performance Polymers, Inc. ( KRA) Monday said that on August 8, it received notice from LCY Chemical Corp. that LCY had exercised its right to terminate the Combination Agreement between Kraton and LCY following the Kraton Board's August 6 withdrawal of its recommendation that Kraton's stockholders approve the Combination Agreement.

The termination notice from LCY declared that the termination was effective as of August 8.

As previously announced, Kraton notified LCY on June 30, that its Board of Directors intended to withdraw its recommendation to Kraton's stockholders unless the parties could agree upon mutually acceptable revised terms to the Combination Agreement.

Kraton's June 30 notice cited the decline in operating results for LCY's SBC business in the first quarter of 2014 and a related decline in forecasted results thereafter, together with the decline in Kraton's stock price and negative reactions from stockholders following its June 24 disclosure.

It was on January 28 that Kraton said it has entered into a definitive agreement to combine with the styrenic block copolymer or SBC operations of Taiwan-based LCY Chemical Corp. The transaction was to combine Kraton's broad product portfolio and innovation platform with LCY's cost-effective and SBC operations.