Mubadala Investment Company, the Abu Dhabi-based strategic investment company, on Thursday completed the transaction for Vienna-based oil and gas company OMV to acquire for $4.68 billion an additional 39% stake in Borealis, a leading global chemicals company, from Mubadala.
Following the initial agreement announced in March this year, the transaction was completed in line with the expected timeline and in accordance with all regulatory requirements, the two companies said in a statement.
The Austrian oil major OMV now holds a 75% interest in Borealis and the UAE wealth fund retains a 25% interest in the company.
As per the deal, OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. “OMV will fully consolidate the results of Borealis in its financial statements.”
In 2019, Borealis generated total sales of EUR 9.8 billion and a net profit of EUR 872 million. The operating cash flow of Borealis – including dividends from its joint venture Borouge –amounted to EUR 1.5 billion in 2019.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala Investment Company, said the transaction is well aligned with the company’s strategy as a responsible investor.
“We are confident in the value this partnership will create for all three companies. Both OMV and Borealis are champions of the Mubadala portfolio, and this decision is consistent with our asset management model and our commitment to partner with like-minded players,” said Kaabi.
The Abu Dhabi-based state fund Mubadala’s $232 billion portfolio spans six continents with interests in multiple sectors and asset classes.
Rainer Seele, chairman of the OMV executive Board and CEO, said the transaction is another milestone in the implementation of our strategy.
“We are thus establishing an integrated and sustainable business model extending OMV’s value chain towards higher value chemical products and recycling, thereby repositioning the Group for a lower carbon future,” said Seele.
According to the statement, the purchase price of the transaction amounts to $ 4.68 billion. Based on closing adjustments, the cash-out for OMV, net of cash acquired, is EUR 3.8 billion.
