Temasek Likes Chemicals, Wants More Of Univar Inc. (NYSE:UNVR)


Increased expectations of higher demand from the manufacturing sector has translated to a somewhat bullish outlook for the specialty chemicals space over the last couple of quarters. Things are far from guaranteed (a Trump elect-in-waiting is making sure of this) but there’s optimism in the US and abroad, and this is buoying markets. The latest specialty chemicals transaction supports this thesis.

In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Univar Inc. (NYSE:UNVR) reported that Temasek Holdings (private) Ltd. has picked up 18,171,599 of common stock as of 2016-12-19.

The acquisition brings the aggregate amount owned by Temasek Holdings (private) Ltd. to a total of 18,171,599            representing a 13.1 % stake in the company.

For those not familiar with the company, Univar Inc. is a distributor of commodity and specialty chemicals. The Company’s segments include Univar USA (USA); Univar Canada (Canada); Univar Europe, the Middle East and Africa (EMEA), and Rest of World. The Rest of World segment includes developing businesses in Latin America, including Brazil and Mexico, and the Asia-Pacific region. Its USA segment offers commodity and specialty chemicals to manufacturing and industrial production sectors in the United States.

A glance at Univar Inc. (NYSE:UNVR)’s key stats reveals a current market capitalization of $3.63 billion based on 138.54 million shares outstanding and a price at last close of $26.32 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2016-08-12, Pappas picked up 5,000 at a purchase price of $19.33. This brings their total holding to 55,088 as of the date of the filing.

On the sell side, the most recent transaction saw Dahlia unload 4,475,627 shares at a sale price of $25.08. This brings their total holding to 18,171,599.            .

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Univar Inc (NYSE:UNVR) as things move forward to see if its progress aligns with these transactions.

The chemicals industry is forecast to double between now and 2020, so it’s well worth watching.

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