Vienna-based OMV, a global oil and gas company and Mubadala Investment, the Abu Dhabi-based investment company, have signed an amendment to the share purchase agreement for the acquisition of the additional 39 per cent share in Borealis AG.
The amendment agreement provides for the purchase price to be paid by OMV in two tranches: $2.34 billion at the closing of the transaction and $2.34 billion no later than December 31, 2021, at a market interest rate from closing.
OMV has the option to pay the deferred amount in full or in part at the closing of the transaction or following closing at the end of each month until December 31, 2021.
“This transaction is an essential step in the company’s strategic development towards chemicals, which OMV will consistently pursue. We are pleased that we have agreed on a payment schedule with our partner Mubadala that allows us to optimize our cash flow management in this challenging economic environment,” said Rainer Seele, chairman of the OMV Executive Board and CEO.
Musabbeh Al Kaabi, CEO of Petroleum & Petrochemicals, Mubadala, added, “Mubadala has been a partner in OMV for over 25 years and, as partners, we too are pleased to reach this agreement given the macroeconomic situation. We remain shareholders in both OMV and Borealis, and remain confident in the fundamentals of their businesses and their future growth potential.”
On March 12, 2020, OMV and Mubadala signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36 per cent stake in Borealis, will acquire an additional 39 per cent from Mubadala, increasing its stake to 75 per cent. Mubadala will retain a 25 per cent interest.
The amendment agreement provides for the purchase price to be paid by OMV in two tranches: $2.34 billion at the closing of the transaction and $2.34 billion no later than December 31, 2021, at a market interest rate from closing.
OMV has the option to pay the deferred amount in full or in part at the closing of the transaction or following closing at the end of each month until December 31, 2021.
“This transaction is an essential step in the company’s strategic development towards chemicals, which OMV will consistently pursue. We are pleased that we have agreed on a payment schedule with our partner Mubadala that allows us to optimize our cash flow management in this challenging economic environment,” said Rainer Seele, chairman of the OMV Executive Board and CEO.
Musabbeh Al Kaabi, CEO of Petroleum & Petrochemicals, Mubadala, added, “Mubadala has been a partner in OMV for over 25 years and, as partners, we too are pleased to reach this agreement given the macroeconomic situation. We remain shareholders in both OMV and Borealis, and remain confident in the fundamentals of their businesses and their future growth potential.”
On March 12, 2020, OMV and Mubadala signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36 per cent stake in Borealis, will acquire an additional 39 per cent from Mubadala, increasing its stake to 75 per cent. Mubadala will retain a 25 per cent interest.
Source Link: www.tradearabia.com
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