
OMV has completed the transaction to acquire an additional 39 per cent stake in Borealis, a global chemicals company, from Mubadala. OMV now holds a 75 per cent interest in Borealis and Mubadala retains a 25 per cent interest in the company.
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. In the first nine months of 2020, Borealis achieved an operating cash flow including Borouge dividends of EUR 1.1 billion, 6 per cent higher than the same period of last year, despite the difficult market environment due to the COVID-19 pandemic.
Musabbeh Al Kaabi, CEO, Petroleum & Petrochemicals, Mubadala Investment Company said he is confident in the value the partnership will create for all three companies.
“This decision is consistent with our asset management model and our commitment to partner with like-minded players.”
Rainer Seele, Chairman of the OMV Executive Board and CEO said the transaction establishes 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.”
The purchase price of the transaction amounts to USD 4.68 billion. Based on closing adjustments, the cash-out for OMV, net of cash acquired, is EUR 3.8 billion. The adjustments include the first quarter dividends to which OMV is entitled based on the increased shareholding, currency effects, and the cash position of Borealis at closing.
Following the successful issuance of senior and hybrid bonds of EUR 4.5 billion, OMV paid the entire amount in full at closing. As a result of the synergies identified in the last few months, OMV is increasing the synergy potential from EUR 700 million to more than EUR 800 million.
In addition, OMV has successfully started its divestment program, which will realise EUR 2 billion by the end of 2021. The sale of the 51-per cent share in OMV’s gas logistics subsidiary Gas Connect Austria has already been signed and will have a deleveraging effect of EUR 570 million for OMV.