OCI Global Sells Majority Stake in Fertiglobe to ADNOC for $3.62 Billion

OCI Global Sells 50% Stake in Fertiglobe to ADNOC

OCI Global has announced the successful completion of the sale of its 50% equity interest in Fertiglobe to the Abu Dhabi National Oil Company (ADNOC). The transaction, valued at USD 3.62 billion on a cash-free and debt-free basis, marks a defining moment in OCI's ongoing strategy to maximize shareholder value.

A Milestone in Shareholder Value Creation

This sale represents a significant milestone for OCI Global as it fully exits its investment in Fertiglobe. The decision to divest aligns with OCI's commitment to unlock greater value for its shareholders, focusing on growth opportunities in the evolving market of sustainable ammonia production.

Leadership Transition at Fertiglobe

Following the completion of the transaction, the shareholding structure of Fertiglobe has seen ADNOC increase its stake to 86.2%. Meanwhile, the remaining 13.8% continues to be traded on the Abu Dhabi Securities Exchange (ADX). In an important leadership move, Mr. Ahmed El-Hoshy has been re-appointed as Chief Executive Officer of Fertiglobe. His experience and leadership are expected to guide the company as it adapts to new opportunities under ADNOC’s stewardship.

Fertiglobe's Journey and Growth

Founded through a strategic partnership between OCI and ADNOC in 2019, Fertiglobe quickly established itself as a leader in the urea and ammonia export market. The company has not only been recognized as the largest seaborne exporter of these products but has also positioned itself as a forerunner in sustainable ammonia solutions. Fertiglobe has consistently performed well financially, returning USD 2.42 billion in dividends since its IPO, reflecting its robust performance and commitment to shareholder returns.

Statements from Leadership

In discussing today’s successful transaction, Nassef Sawiris, Executive Chairman of OCI, emphasized its importance in Fertiglobe's ongoing journey, highlighting the strategic partnership with ADNOC as a pivotal part of their collective success. He expressed confidence in the future of Fertiglobe under ADNOC's leadership, especially with the increasing market demand for low-carbon products.

Ahmed El-Hoshy also shared his insights, celebrating the progress made since the IPO and the collective efforts of the OCI and Fertiglobe teams. He views this transaction as a critical evolution in Fertiglobe's path toward greater independence and dominance in the low-carbon ammonia sector.

The Road Ahead for OCI Global

CEO of OCI, Hassan Badrawi, reflected on the remarkable platform built since their inception in 2007, noting the milestones achieved during the merger of their fertilizer assets with ADNOC. He believes that Fertiglobe is now well-equipped for its next growth phase and wishes Mr. El-Hoshy continued success in this new chapter.

About OCI Global

OCI Global is recognized as a pioneering producer and distributor of hydrogen products. To further explore OCI's innovative offerings and corporate details, the company encourages interested parties to visit their official website.

Frequently Asked Questions

What is the significance of OCI's sale of its Fertiglobe stake?

This sale allows OCI to fully exit its equity stake in Fertiglobe, unlocking considerable value for its shareholders.

Who is the new CEO of Fertiglobe?

Ahmed El-Hoshy has been re-appointed as Chief Executive Officer of Fertiglobe and will lead the company into its next growth phase.

What were the financial details of the transaction?

The divestment was valued at USD 3.62 billion, providing OCI a significant financial exit from its stake in Fertiglobe.

How has Fertiglobe performed since its IPO?

Since its IPO, Fertiglobe has returned USD 2.42 billion in dividends to shareholders, making it one of the top-performing entities on the ADX.

What future prospects does OCI foresee?

OCI anticipates that under ADNOC's leadership, Fertiglobe will capitalize on new opportunities for value creation and market expansion, especially in sustainable solutions.

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