OCI Enterprises sells 73% stake in OCI Resources to Ciner

22 Jul '15

3 min read

OCI Enterprises is selling its 73 per cent stake in OCI Resources LP as well as its 2 per cent general partner interest and related incentive distribution rights, to Park Holding, a subsidiary of Ciner Group of Turkey.

Following the transaction, OCI Resources will continue to operate as a publicly traded Master Limited Partnership (MLP) with the current management team remaining with the Partnership.

In a press release, OCI Enterprises, which is the North American subsidiary of OCI Company Ltd, Korea said the transaction does not involve the sale or purchase of any OCI Resources common units held by the public.

The transaction is subject to customary closing conditions and regulatory approvals and is expected to close by the end of the third quarter 2015.

OCI Resources owns a controlling interest comprised of a 51 per cent stake in OCI Wyoming LLC, one of the largest and lowest-cost producers of natural soda ash in the world.

Ciner Group, through its subsidiary, Eti Soda, operates a natural soda ash production facility in the world's second largest trona ore bed located in Beypazarri, Turkey.

“We are really excited about our new strategic relationship with Ciner Group and their desire to help us expedite the growth,” said OCI Resources president and CEO Kirk Milling.

“We think there will be numerous opportunities to leverage their expertise to help us grow our cash flow,” Milling added by saying.

“With its position in markets that are complementary to ours, OCI Resources brings solid operational and financial performance as well as industry-leading safety performance,” Ciner Group chairman Turgay Ciner said.

In June 2015, OCI Enterprises Inc. announced it was evaluating strategic alternatives for its stake in OCI Resources.

OCI Enterprises Inc. is comprised of two divisions, namely Atlanta-based OCI Chemical Corporation and San Antonio-based OCI Energy LLC.

OCI Resources LP operates the trona ore mining and soda ash production business of OCI Wyoming LLC, from its facility in the Green River Basin of Wyoming, which has been in operation for more than 50 years.

OCI Company Ltd. founded in 1959, has developed a diversified portfolio of products and solutions for a broad spectrum of industries in the renewable energy sector with about $3 billion in sales in 2014.

It has more than 4,800 employees and operates in more than 20 overseas subsidiaries and regional branches in Asia, the US and Europe. (AR)

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