) rose 4.4% during the trading session following the news that it
has completed the sale of roughly 10% equity share in its
Egyptian joint venture Egyptian Methanex Methanol Company S.A.E.
(EMethanex) to Arab Petroleum Investments Corporation (APICORP)
for $110 million. The company's shares eventually closed at
$58.37, gaining around 3.4%.
This transaction will increase APICORP's ownership stake in
EMethanex to roughly 17%. Methanex will remain the majority stake
holder of EMethanex with just over 50% ownership. Remaining 33%
stake in the joint venture is held by Egyptian government
shareholders like Egyptian Petrochemical Holding Company (holding
12%); Egyptian Natural Gas Holding Company (holding 12%); and
Egyptian National Gas Company (holding 9%).
Following this transaction, there will be no change in
EMethanex's governance or operations. Moreover, it will continue
to be integrated into Methanex's organizational structure.
APICORP is a multilateral development bank established in 1975 by
the Organization of Arab Petroleum Exporting Countries (OAPEC).
It raises capital through strategic equity and debt financing,
and provides advisory and research services so as to facilitate
the development and transformation of the Arab hydrocarbon and
energy industries. APICORP has been a shareholder of EMethanex
since its inception.
This transaction will mutually benefit both APICORP and
EMethanex. The deal will increase APICORP's investment scope in
the Arab energy industry including downstream sectors and
midstream sectors and EMethanex will benefit from APICORP's
growing support. APICORP's increased ownership in EMethanex
reflects a productive mutual cooperation and reinforces APICORP's
confidence in Egypt's hydrocarbon industry.
The EMethanex plant, which is located in Damietta, Egypt on the
Mediterranean Sea, started its commercial operations in 2011. The
facility is among the most energy efficient methanol plants
globally. It is capable of producing 1.3 million tons of methanol
every year. It supplies methanol to local and global markets and
conforms to Methanex's global methanol supply chain.
Methanex retains a Zacks Rank #2 (Buy).
Other companies in the chemical industry worth considering are
Asahi Kasei Corp.
Johnson Matthey plc
PPG Industries Inc.
). While Asahi Kasei and Johnson Matthey hold a Zacks Rank #1
(Strong Buy), PPG Industries retains a Zacks Rank #2 (Buy).
ASAHI KASEI CP (AHKSY): Get Free Report
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METHANEX CORP (MEOH): Free Stock Analysis
PPG INDS INC (PPG): Free Stock Analysis
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