Huntsman Corp.'s (HUN) Sale of $2 Billion in Assets Will Spur Aggressive Buybacks Over The Next Year
When Huntsman Corp. announced the asset sale on August 7, 2018, and gave its presentation to analysts the next day, it made clear that a major portion of the net $2.07 billion in proceeds would be used to "accelerate" share repurchases. HUN also provided detailed forecasts of both its expected adjusted EBITDA and expected free cash flow ("FCF").
HUN made it clear that investors could expect $944 million in stable EBITDA earnings once the loss-making subsidiary is sold.