Celanese may use $300 million incremental cash for share buybacks, debt paydowns

By Lisa Kerner

Charlotte, N.C., Dec. 13 - Celanese Corp. may use the estimated $300 million in incremental cash the company generated as the result of a strong year to maximize shareholder value, which could include share repurchases, recapitalization and simple debt pay down, according to chief financial officer John Gallagher.

The board will evaluate how to use the cash, Gallagher said Wednesday at the company's investor conference in New York.

"We have a substantial opportunity to address our capital structure in 2007," Gallagher noted, with capital expenditures estimated at $250 million for 2007.

The Dallas-based chemical company has $3.6 billion of net debt.

Celanese also announced the planned sale of its Oxo products and derivatives businesses, including European Oxo GmbH, a joint venture between Celanese AG and Degussa AG, to Advent International for roughly $630 million.

Additional investment activities include the $80 million "CAG squeeze out" and the company's pending $110 million acquisition of Acetate Products Ltd., according to Wednesday's presentation.

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