OMV and Mubadala agree on payment for additional 39% share in Borealis

The amendment agreement provides for the purchase price to be paid by OMV in two tranches: US$2.34 billion at closing of the transaction and US$2.34 billion no later than 31 December 2021 at a market interest rate from closing.

OMV has the option to pay the deferred amount in full or in part at closing of the transaction or following closing at the end of each month until 31 December 2021.

“This transaction is an essential step in the company’s strategic development towards chemicals, which OMV will consistently pursue. We are pleased that we have agreed on a payment schedule with our partner Mubadala that allows us to optimise our cash flow management in this challenging economic environment”, said Rainer Seele, Chairman of the OMV Executive Board and CEO.

Musabbeh Al Kaabi, CEO of Petroleum & Petrochemicals, Mubadala, added, “Mubadala has been a partner in OMV for over 25 years and, as partners, we too are pleased to reach this agreement given the macroeconomic situation. We remain shareholders in both OMV and Borealis, and remain confident in the fundamentals of their businesses and their future growth potential.”

On 12 March 2020, OMV and Mubadala signed an agreement that will give OMV a controlling stake in Borealis, one of Europe’s leading petrochemical companies. OMV, which currently owns a 36% stake in Borealis, will acquire an additional 39% from Mubadala, increasing its stake to 75%. Mubadala will retain a 25% interest.

Read the article online at: https://www.worldpipelines.com/contracts-and-tenders/27032020/omv-and-mubadala-agree-on-payment-of-the-purchase-price-for-the-additional-39-share-in-borealis-in-tranches/