ADNOC Sells 3% of its Distribution Unit


Logos of ADNOC (Reuters)
Logos of ADNOC (Reuters)
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ADNOC Sells 3% of its Distribution Unit


Logos of ADNOC (Reuters)
Logos of ADNOC (Reuters)

Abu Dhabi National Oil Company announced the successful closing of its offering of approximately 375 million shares in ADNOC Distribution, approximately 3 percent of the registered share capital of ADNOC Distribution.

The securities referred to herein may not be offered or sold in the United States unless registered under the US Securities Act of 1933, as amended, or offered in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and in compliance with applicable United States state law.

It also issued approximately $1,195 billion of senior unsecured bonds due 2024 that are exchangeable into existing shares of ADNOC Distribution constituting approximately 7 percent of the registered share capital of ADNOC Distribution, under certain conditions.

“This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities to any person in the United Arab Emirates, the United States, Australia, Canada, Japan or Saudi Arabia, or in any jurisdiction in which such offer or solicitation is unlawful,” read the company’s statement.

The combined offering was placed at a blended price of AED 4.82 ($1.1) per share, which is 5.7 percent above the current 3-month volume-weighted average share price.

The Exchangeable Bonds, with a maturity date of 2024, are denominated in US dollars and bear a coupon of 0.70 percent, said the company.

The Exchangeable Bonds are issued at an issue price of 100 percent and will be exchangeable into existing shares of ADNOC Distribution at an exchange price of AED 5.01 ($1.37) under certain conditions.

Settlement of the Share Offering is expected to occur on or about May 31, and settlement of the Exchangeable Bond Offering is expected to occur on or about June 4.

UAE Minister of Industry and Advanced Technology and Managing Director and Group CEO of ADNOC Sultan Ahmed al-Jaber said the success of this innovative and pioneering Combined Offering, the first of its kind in the GCC, highlights the attractive investment opportunities and environment provided by ADNOC, Abu Dhabi, and the UAE.

The "innovative deal structure" has the potential to increase the free float of ADNOC Distribution to 30 percent assuming the Exchangeable Bonds are exchanged and settled in shares, and ADNOC will retain at least a 70 percent strategic stake in the company as it continues to see significant growth potential in ADNOC Distribution, according to Jaber.



Saudi Energy Minister: OPEC+ Now Key Stabilizer of Oil Prices

Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
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Saudi Energy Minister: OPEC+ Now Key Stabilizer of Oil Prices

Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)
Saudi Energy Minister Prince Abdulaziz Speaks at St. Petersburg Economic Forum – (X)

Saudi Energy Minister Prince Abdulaziz bin Salman said on Thursday that the OPEC+ alliance has become a key stabilizing force for oil prices and the broader energy market, describing the group as a reliable and adaptive coalition that responds only to market realities.

 

Speaking at the annual St. Petersburg International Economic Forum in Russia, Prince Abdulaziz stressed that OPEC+ is flexible and reacts only to facts, not speculation.

 

“We are a credible alliance that adapts as circumstances evolve,” he told a session that also featured Russian Deputy Prime Minister Alexander Novak.

 

The minister’s remarks came on the opening day of the forum, which began with a welcome address by Russian President Vladimir Putin.

 

Putin emphasized Russia’s commitment to “sovereign development and respect for cultural and civilizational identity,” particularly within partnerships such as BRICS. He said Moscow remains committed to building a “fair and mutually beneficial international system of cooperation free from discrimination, coercion and sanctions pressure.”

 

During the joint session, Prince Abdulaziz said: “As you know, we are not the only two countries managing OPEC+. The alliance consists of 22 countries, including a core group of eight. It is our duty to maintain communication with all members and ensure joint decisions are made in response to market developments.”

 

He warned against unilateral declarations on behalf of the group, saying: “No one has the right to speak on behalf of the alliance without knowing the collective stance.”

 

Since its formation, OPEC+ has resolved “many challenges,” he added.

 

The eight core members of the OPEC+ alliance are Saudi Arabia, Russia, Iraq, the United Arab Emirates, Kuwait, Kazakhstan, Algeria and Oman. These countries are scheduled to meet on July 6 to decide whether to begin increasing production in August.

 

At the end of May, OPEC announced that the eight nations had agreed to boost oil output by 441,000 barrels per day in July, citing improving global economic conditions and strong market fundamentals.

 

When asked whether Saudi Arabia and Russia would step in to offset any potential shortfall in Iranian oil, Prince Abdulaziz said: “We only respond to facts.” He reiterated that OPEC+ remains a reliable and effective alliance, closely monitoring market developments.

 

The minister also highlighted efforts by Riyadh and Moscow to create a favorable investment climate in both countries through various joint projects, noting the importance of fostering such conditions amid current global uncertainties.

 

Novak, for his part, underscored the need for oil market stability. “OPEC+ must implement its plans calmly and avoid creating panic in the market,” he said, cautioning against overreactions at a time when oil prices have surged due to tensions between Iran and Israel.