Ashland Issues Update On Separation Of Business, Will Pursue An IPO Of Valvoline In Q4

after Wednesday's market close an update to its planned separation of Valvoline. The company

in September 2015

that it will separate itself into 2 independent, publicly traded companies. The first company, 'The New Ashland,' will be a global leader in providing specialty chemical solutions to consumer and industrial markets. The second company, 'Valvoline,' will focus on the engine and automotive maintenance business. Ashland said in its latest update that it will pursue an initial public offering of up to 20 percent of the common stock of Valvoline as a first step in its separation. A registration statement is expected to be filed by mid-2016 and the IPO is expected to debut in the fourth quarter of calendar 2016. The remaining common stock of Valvoline will be distributed to Ashland's shareholders upon expiration of the IPO-luck up. "Ashland's objective in pursuing an IPO of Valvoline as the first step in the planned separation is to create two strong independent companies, each with a targeted mid-to-high BB ratings profile consistent with what was communicated at the time of announcement," the company explained in its press release. "The resultant capital structures for Valvoline and new Ashland are expected to provide an optimal level of financial flexibility for each company to pursue its long-term strategies. In addition, Ashland expects the planned IPO will allow Valvoline to establish a core shareholder base in advance of the distribution of the remaining common stock, and facilitate industry-specific research coverage for Valvoline."