The Oman Investment Authority (OIA) has started the process for divesting its majority stake in Oman Cement Co. 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.”
OIA will sell its entire shareholding to Huaxin Cement Co. Among the 10 largest cement producers in the world, the China-based company is listed on the Shanghai and Hong Kong stock exchanges.
'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,' Mr Al Eisari added.
In a disclosure to the Muscat Stock Exchange, Oman Cement said its majority shareholder Investment Authority SPC, a wholly-owned subsidiary of OIA, has entered into a sale purchase agreement with Huaxin (Hong Kong) International Holdings Ltd, part of Huaxin Cement Co, for the 59.58 per cent stake in Oman Cement’s issued capital.
“Pursuant to the share purchase agreement, the initial consideration payable at completion shall be US$193.1m which corresponds to 59.58 per cent of the equity value of the company as of 31 December 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 1 June 2023.
