Doha: Arab Petroleum Investments Corporation (Apicorp) announced yesterday that it is set to increase its equity share in Egyptian Methanex Methanol Company (EMethanex) by purchasing an additional 10 percent stake from the majority shareholder, Canada-based Methanex. The $110m transaction will increase Apicorp’s share in the joint venture from seven percent to 17 percent. Subject to completion of certain conditions precedent, the companies expect the sale to be finalised by the end of 2013. The government of Qatar owns a 10 percent stake in Apicorp.
Apicorp has been a stakeholder in EMethanex since its inception in 2005. Apicorp has also been a Senior Lead Arranger for the financing arranged in 2006 for the construction of EMethanex.
Ahmad bin Hamad Al Nuaimi, Chief Executive and General Manager of Apicorp said: “We are pleased to expand our direct equity participation in EMethanex, a company that has over the last decade developed into an important methanol production hub. One of the key focuses of our ongoing diversification programme is to support companies that are helping expand the Arab world’s downstream production capabilities. We believe that such capabilities are critical for Arab economies to maximise economic gains from their vast hydrocarbon resources. ”
Following the equity transaction, Methanex, the world’s largest supplier of methanol, will continue to remain the operator and majority shareholder of EMethanex with just over 50 percent ownership.
The remaining 33 percent interest is held by the Egyptian government, through Egyptian Petrochemical Holding Company; Egyptian Natural Gas Holding Company; and Egyptian National Gas Company.
The Peninsula
