The transaction will increase APICORP's ownership in the joint venture to 17%. Methanex will remain the operator and majority shareholder of EMethanex with just over 50% ownership. The remaining 33% interest is held by several Egyptian government shareholders. Subject to completion of certain conditions precedent, the companies expect the sale to be finalized by the end of 2013.
APICORP, an inter-Arab development bank, raises capital through an array of strategic equity and debt investments with the objective of fostering the development of the Arab world's oil and gas industries. APICORP is a strong supporter of Egypt and has been a shareholder of EMethanex since the project's inception. The company has steadily expanded the scope of its investments in the energy industry including midstream sectors such as methanol.
John Floren, President and CEO of Methanex commented, "This is a win-win arrangement. The transaction aligns with APICORP's investment strategy, and EMethanex will benefit from APICORP's growing support. We are looking forward to continuing to build our relationship with APICORP. In Egypt, we have built a world-class methanol facility, and we believe our Egyptian operations will continue to create value for shareholders today and well into the future."
Kamilia Sofia, President and CEO of EMethanex stated, "This transaction is positive for both EMethanex and Egypt. It demonstrates the support of APICORP for EMethanex and its confidence in Egypt's future."
Ahmad Bin Hamad Al Nuaimi, APICORP's CEO and GM stated, "We are pleased to be increasing our investment in EMethanex. This investment supports our strategy of deepening our support for midstream and downstream sectors in the Arab energy industry. The EMethanex plant is a world class methanol facility and we expect it to generate strong value for our shareholders. This transaction also further expands our support for Egypt's hydrocarbon industry."
Methanex will remain the majority shareholder of EMethanex and there will be no governance changes or impact on its operations. EMethanex will continue to be integrated into Methanex's organization. This state of the art methanol production facility started commercial operations in 2011.
The plant is located in Damietta, Egypt on the Mediterranean Sea and is among the most energy efficient methanol plants in the world. The plant, which can produce 1.3 million tonnes of methanol per year, supplies both the local and global methanol markets and is integrated seamlessly into Methanex's global methanol supply chain.
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