Methanex has agreed to sell an approximately 10% equity
share in Egyptian Methanex Methanol Company S.A.E. (EMethanex)
to Arab Petroleum Investments Corp. (APICORP) for $110 million,
the company confirmed on Wednesday.
The transaction will increase APICORP's ownership in the joint
venture to 17%. Methanex will remain the operator and majority
shareholder of EMethanex with just over 50% ownership. The
remaining 33% interest is held by several Egyptian government
Subject to completion of certain conditions precedent, the
companies expect the sale to be finalized by the end of
"This is a win-win arrangement," said John Floren, CEO of
Methanex. "The transaction aligns with APICORP's investment
strategy, and EMethanex will benefit from APICORP's growing
support. We are looking forward to continuing to build our
relationship with APICORP. In Egypt, we have built a
world-class methanol facility, and we believe our Egyptian
operations will continue to create value for shareholders today
and well into the future."
APICORP, an inter-Arab development bank, raises capital
through an array of strategic equity and debt investments with
the objective of fostering the development of the Arab world's
oil and gas industries.
APICORP is a strong supporter of Egypt and has been a
shareholder of EMethanex since the project's inception. The company has
steadily expanded the scope of its investments in the energy
industry including midstream sectors such as methanol.
"We are pleased to be increasing our investment in
EMethanex," said Ahmad Bin Hamad Al Nuaimi, APICORP's
general manager and CEO. "This investment supports our
strategy of deepening our support for midstream and downstream
sectors in the Arab energy industry."
Methanex will remain the majority shareholder of EMethanex
and there will be no governance changes or impact on its
operations. EMethanex, which started commercial operations in
2011, will continue to be integrated into Methanex's
The EMethanex plant is located in Damietta, Egypt, on the
Mediterranean Sea and is among the most energy efficient
methanol plants in the world. The plant, which can produce 1.3
million tpy of methanol, supplies both the local and global
methanol markets and is integrated into Methanex's global
methanol supply chain.
"This transaction is positive for both EMethanex and Egypt. It
demonstrates the support of APICORP for EMethanex and its
confidence in Egypt's future," said Kamilia Sofia, CEO of