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OCI World Broadcasts Promise for the Sale of its World Methanol Trade to Methanex


  • OCI World (“OCI”, the “Company”) has entered right into a binding fairness acquire contract for the sale of 100% of its fairness pursuits in its World Methanol Trade (“OCI Methanol”) to Methanex Company (“Methanex”), (the “Transaction”).
  • Acquire value attention of USD 2.05 billion on a cash-free and debt-free foundation (“Enterprise Value” or “Transaction Consideration”) following a aggressive procedure.
  • The Transaction Attention might be paid via a mixture of roughly USD 1.15 billion of money (taking into consideration anticipated web indebtedness) matter to commonplace terminating changes, and the issuance of 9.9 million of habitual stocks of Methanex (“Methanex Shares”). The Methanex Stocks lend OCI with the chance to take part in possible upside from the Transaction reminiscent of enhancements in operations of the mixed trade and possible enhancements within the methanol {industry} cycle. OCI is predicted to grow to be an roughly 13 in line with cent shareholder, and the second one biggest shareholder in Methanex following the Transaction.
  • The Transaction is predicted to alike within the first part of 2025 matter to delight of positive regulatory approvals, commonplace terminating situations, and receipt of OCI shareholder favor. OCI’s Board of Administrators has authorized the Transaction and has advisable that its shareholders approve the Transaction. An contract to vote for the Transaction has been signed via the biggest shareholder of OCI with an passion of roughly 39 % within the Corporate.
  • Proceeds from the Transaction might be thought to be along anticipated proceeds from OCI’s up to now introduced divestitures in IFCo, Fertiglobe and OCI Blank Ammonia (the “Divestitures”). Cumulatively, the Divestitures are anticipated to crystallize roughly USD 11.6 billion of improper proceeds for OCI and can have the funds for the Corporate really extensive flexibility to free up price for all its stakeholders. Proceeds might be prioritized to seriously loose OCI protecting corporate improper debt and to go back capital to shareholders. Hour steerage on OCI’s capital allocation framework might be equipped in the end.

AMSTERDAM, Sept. 8, 2024 /PRNewswire/ — OCI World (Euronext: OCI), (“OCI”, the “Company”), a main world manufacturer and distributor of hydrogen merchandise lately introduced that it has reached an contract for the sale of 100% of its fairness pursuits in its World Methanol Trade (“OCI Methanol”) to Methanex Company (“Methanex”) for a complete attention of USD 2.05 billion on a cash-free and debt-free foundation (the “Transaction”).

Transaction main points

  • Underneath the proposed Transaction, Methanex will gain 100% of the fairness pursuits in OCI Methanol, comprising 100% of OCI’s US and Eu methanol property respectively. OCI Methanol is not directly owned 85% via OCI and 15% via its companions Alpha Dhabi Preserving PJSC and ADQ.
  • The Transaction Attention might be paid via a mixture of roughly USD 1.15 billion of money (taking into consideration web indebtedness) matter to commonplace terminating changes, and the issuance of 9.9 million of habitual stocks of Methanex (“Methanex Shares”). According to a worth of USD 45 in line with percentage, Methanex percentage attention of 9.9 million is valued at USD 450 million, make happen OCI possession in enlarged Methanex of roughly 13 in line with cent. Financing isn’t a situation precedent for the Transaction.
  • The sale of OCI Methanol’s oblique 50% stake within the Natgasoline LLC three way partnership (“Natgasoline”) as a part of the Transaction is matter to the solution of a lawsuit filed within the Delaware Court docket of Chancery via Proman (CEL) (“Proman”), which not directly owns the residue 50% stake in Natgasoline. 40 % of the improper Transaction Attention and 23% of the online Transaction Attention (taking into consideration web indebtedness) – or 23% of the implied fairness price – is because of Natgasoline. OCI believes that Proman’s claims are with out advantage.
  • The Transaction is predicted to alike within the first part of 2025 matter to delight of positive regulatory approvals, commonplace terminating situations, and receipt of OCI shareholder favor. OCI’s Board of Administrators has authorized the Transaction and has advisable that its shareholders approve the Transaction. An contract to vote for the Transaction has been signed via the biggest shareholder of OCI with an passion of roughly 39 % within the Corporate.

About OCI Methanol

OCI Methanol is a main methanol manufacturer in america and thru OCI HyFuels, a main manufacturer and distributor of inexperienced methanol lately. OCI Methanol’s general fertile capability contains please see property:

  • A methanol facility in Beaumont, Texas with an annual manufacturing capability of 910,000 tonnes of methanol and 340,000 tonnes of ammonia. This plant used to be restarted in 2011 and because that age the plant has been upgraded with USD 800 million of capital for complete web site refurbishment and debottlenecking.
  • A 50 % passion in a 2nd methanol facility additionally in Beaumont, Texas, operated via Natgasoline, which is a three way partnership with Proman. The Natgasoline plant used to be commissioned in 2018 and has an annual capability of one.7 million tonnes of methanol, of which Methanex’s percentage might be 850,000 tonnes.
  • OCI’s HyFuels trade, which produces and sells industry-leading volumes of low-carbon methanol and has buying and selling and distribution features for renewable herbal gasoline (RNG).
  • A methanol facility in Delfzijl, Netherlands with an annual capability to form 1,000,000 tonnes of methanol. This facility isn’t these days in manufacturing because of negative pricing for herbal gasoline feedstock.

OCI Methanol’s property are in extremely strategic evolved marketplace places throughout america and Europe with get entry to to strong and low cost USGC herbal gasoline enabling first quartile price curve positions, and with in depth distribution and deposit features akin primary business call for centres and key bunkering hubs.

OCI HyFuels is a pioneering first-mover in offering the street, marine, energy, and business sectors with renewable and low-carbon gas possible choices to fulfill evolving regulatory necessities. The trade contains the manufacturing and distribution of inexperienced methanol, bio-MTBE, renewable herbal gasoline, and ethanol.

Methanol and ammonia are key enablers of the hydrogen economic system and probably the most logical hydrogen fuels, key to decarbonizing hardened to impede industries together with marine. The Transaction will permit Methanex to force and boost up the transition to a hydrogen economic system.

Nassef Sawiris, Govt Chairman of OCI commented: “We are pleased with the opportunity to achieve a significant ownership position in Methanex and are highly confident in Methanex’s ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023.”

Ahmed El Hoshy, CEO of OCI commented: “This is an outstanding strategic fit for Methanex. I would like to thank my OCI colleagues for their efforts in building such a strong globally competitive methanol platform, ultimately leading to this transaction. We look forward to working closely with Methanex’s management to fully integrate the business and to ensure continuity and successful stewardship through closing and beyond.”

Hassan Badrawi, CFO of OCI commented: “Combined with the recent divestitures, OCI is crystallizing approximately USD 11.6 billion of expected tax-free gross proceeds. The resulting financial profile provides significant flexibility to achieve all OCI’s goals, including the ability to meaningfully return capital to shareholders.”

Bashir Lebada, CEO of OCI Methanol Workforce commented: “This transaction is testament to the efforts of an exceptionally talented group across OCI Methanol’s platform, who have prioritized value creation for the past 14 years. We are proud of OCI’s contributions to new applications, and in pioneering the use of methanol as a fuel globally, Methanex is well positioned to leverage OCI HyFuels to accelerate the transition to a low-carbon economy. Our highly profitable 350kt synloop-based ammonia production is also optimally placed to offer synergistic diversification, without meaningful capex. We are confident that the OCI team will pursue this work at pace with Methanex moving forward.”

A convention name for buyers and analysts might be hosted at 8am ET / 1pm BST / 2pm CET on 10 September.

  • Buyers and analysts can get entry to the decision and ask reside questions via pre-registering here. Upon registration, a person get entry to code and dial-in main points might be routinely despatched by means of electronic mail.
  • Alternative contributors may additionally attach by means of the webcast. Please pre-register and attach here.

Morgan Stanley & Co. World plc is serving as unique monetary guide to OCI at the transaction. A&O Shearman is appearing as its criminal guide.

This press loose incorporates knowledge inside the that means of Article 7(1) of the EU Marketplace Abuse Legislation.

About OCI World

We’re an international chief in nitrogen, methanol, and hydrogen, using ahead the decarbonization of the energy-intensive industries that surrounding, feed and gas the sector. OCI’s manufacturing capability spans 4 continents and contains roughly 13.5 million metric heaps in line with date of hydrogen-based merchandise together with nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI is headquartered in the Netherlands and indexed on Euronext in Amsterdam. Be told extra about OCI at www.oci-global.com. You’ll additionally apply OCI on LinkedIn.

About Methanex

Methanex is a Vancouver-based, publicly traded corporate and is without doubt one of the global’s biggest providers of methanol. Methanex stocks are indexed for buying and selling at the Toronto Hold Trade in Canada beneath the buying and selling image “MX” and at the NASDAQ World Marketplace in america beneath the buying and selling image “MEOH”.  Methanex will also be visited on-line at www.methanex.com.

Touch Main points

Sarah Rajani CFA, Vice President Investor Family members & Communications
Electronic mail: [email protected] 

SOURCE OCI World



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