Muscat – The Oman Investment Authority (OIA) on Monday announced that it has started the process for exiting investment in Oman Cement Company. OIA, which owns a majority stake in Oman Cement, will sell its entire stake to China-based Huaxin Cement Company.
In a statement to Oman News Agency, Ibrahim bin Said al Eisari, director general of private ownership at OIA, said, “This exit comes in accordance with a plan pursued by OIA aimed at achieving a number of goals, including attracting foreign investment to the sultanate. This will contribute to achieving economic diversification and transfer of modern technology to the targeted sectors.”
He pointed out that Huaxin Cement Company is among the 10 largest cement manufacturers in the world. Huaxin is listed on the Shanghai and Hong Kong stock exchanges and relies on modern technologies for its work.
“This will contribute to the development of operations at Oman Cement, increase its efficiency in production lines, and enhance its competitiveness locally and regionally, in addition to enhancing the positive image of the Omani industrial sector in general,” Eisari added.
In a disclosure to the Muscat Stock Exchange, Oman Cement confirmed that it received intimation from its major shareholder Investment Authority SPC (IA), a wholly-owned subsidiary of OIA.
As per the disclosure, IA has entered into a sale purchase agreement with Huaxin (Hong Kong) International Holdings Limited, a wholly-owned subsidiary of Huaxin Cement Company, for the sale of IA’s entire shareholding in Oman cement to Huaxin, comprising 59.58 per cent of the issued capital of Oman Cement.
‘Pursuant to the share purchase agreement, the initial consideration payable at completion shall be US$193.1mn which corresponds to 59.58 per cent of the equity value of the company as of December 31, 2022,’ Oman Cement said.
‘Following completion, the final consideration will be calculated based on the actual equity value of Oman Cement as of the completion date (taking into consideration cash, debt, and working capital movements as of the completion date) as well as the dividends for 2022 that will be approved at the next annual general meeting of the company,’ the company added.
Oman Cement said that the completion of the transaction is subject to certain conditions, including regulatory approvals and filing in Oman and China, adding that the longstop date for completion of the transaction is June 1, 2023.
© Apex Press and Publishing Provided by SyndiGate Media Inc. (Syndigate.info).