Dubai The Arab Petroleum Investments Corporation (Apicorp), the multilateral development bank of the Organisation of Arab Petroleum Exporting Countries (Oapec), said it has signed an agreement to sell its 12 per cent stake in the Egypt-based Alexandria Carbon Black Company (ACBC) to the Aditya Birla Group, the majority shareholder of the company.
By doing so, Apicorp has set in motion a divestment plan aimed at mobilising funds for a new phase of investments, the firm said in a statement yesterday.
The divestment, Apicorp's first, was approved by its board on December 26. The UAE Government owns a 17 per cent stake in Apicorp.
Ahmad Bin Hamad Al Nuaimi, chief executive and general manager of Apicorp, said: "The agreement is further evidence of the rapid divestment potential of our investments. Hence, this sale is part of an investment strategy to redeploy funds for diversification into new midstream sectors, particularly oil refining, storage, transport and shipping."
He added: "The goal of each of our investments is to support our investee company in reaching a level of business stability and operational maturity from which it can sustainably accelerate its development. Since we invested in ACBC 17 years ago, we have seen the company evolve into the world's largest production line in the carbon black industry and we now feel it is the right time to monetise the investment."
ACBC was established in January 1993 in Egypt. Apicorp has been a 12 per cent equity stakeholder with a board representation in ACBC since its establishment. The company produces various grades of carbon black, the basic material used in the manufacture of tyres and other rubber-based products like hoses and inks.
Dr. Santrupt B Misra, chief executive of the Aditya Birla Group's carbon black business, said: "Apicorp has played an important role in the growth of ACBC since investing in the company 17 years ago. We are sad that it will no longer be part of ACBC's investment family, but we are pleased that we will continue our partnership with Apicorp in Alexandria Fiber Company [AFCO] in which we are both equity partners. We also look forward to exploring new investment partnerships with Apicorp in the future."
Long-term growth
Apicorp said it seeks to actively continue exploring long-term growth opportunities for all its businesses in Egypt.
As part of its 2010-2014 five-year plan, Apicorp is seeking to broaden its investments across the Middle East and North Africa oil and gas industry spectrum, especially in midstream projects. According to its own research, the region's oil and gas industry offers an investment potential of around $615 billion (Dh2.25 trillion) and many attractive opportunities.
