Austria's OMV and Abu Dhabi National Oil Company (ADNOC) signed an agreement for the acquisition of a 15 percent share in Abu Dhabi Oil Refining Company (ADNOC Refining) and a 15 percent share in a to-be-established trading joint venture, OMV announced on Sunday.
The estimated purchase price for OMV amounts to approximately $2.5 billion based on 2018 year-end net debt and subject to certain working capital adjustments.
In line with the agreement, the 15 percent stake amounts to an enterprise value of approximately $2.9 billion.
The transaction will grant OMV a stake in a refinery hub in Abu Dhabi with integrated petrochemicals consisting of Ruwais East, Ruwais West and Abu Dhabi Refinery with a total capacity of 922,000 barrels per day.
"The to-be-established trading joint venture will allow OMV to participate in netback optimized export sales and international trading activities. The transaction will be accretive to OMV’s earnings per share from the first year onwards. A financial framework to achieve self-funded growth, paired with an attractive dividend policy, has been agreed," OMV explained.
The implementation of the transaction is subject to conditions precedent, such as merger control clearances. The transaction is anticipated to close in the third quarter of 2019.
By Murat Temizer