2023-12-15 21:03:55
Abu Dhabi (WAM)
Abu Dhabi National Oil Company (ADNOC) and OCI Global announced the conclusion of a sale and purchase agreement under which ADNOC will acquire the entire share of OCI in Vertiglob. The agreement, which makes ADNOC the majority shareholder in Vertiglobe, supports the company’s ambitious strategy to grow its business in the chemicals field, and reinforces its plans to create a global growth platform for the production of ammonia, which is a low-carbon fuel and hydrogen carrier.
Under the agreement, ADNOC will purchase OCE’s entire stake in Vertiglob (50% + one share) at a price of 3.20 dirhams per share, representing a total purchase price of 13.28 billion dirhams ($3.62 billion).
In addition to the value paid, the agreement includes a “profit-earning mechanism” for OCI for the fiscal year 2024 and fiscal year 2025, which is linked to the pricing of goods and the free cash flow performance of “Vertiglobe’s” business during this specific period.
After completing the deal, ADNOC’s stake in Vertiglob will rise to 86.2%, while the percentage of free shares traded on the Abu Dhabi Securities Market will remain at 13.8%.
Khaled Salmeen, CEO of ADNOC’s Refining, Manufacturing and Marketing Department, said: “Through our close partnership with OCA since 2018, we have succeeded in listing Vertiglobe and growing it to become the world’s largest marine exporter of urea and ammonia, and this important deal supports the strategy.” ADNOC is ambitious to grow its chemicals business and is accelerating its plans to create a global growth platform for the production of ammonia and clean ammonia.
For his part, Nassef Sawiris, Vice Chairman of the Board of Directors of Vertiglobe and Chairman of the Board of Directors of OCI Global, said: Thanks to the great support and continuous guidance provided by ADNOC, Vertiglobe will have unique opportunities to enhance its growth and maximize its value.
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