Vale sells 50% stake in Oman distribution centre to propel long-term growth
Published: 05:08 PM,Aug 07,2024 | EDITED : 03:08 PM,Aug 08,2024
VODC operates a state-of-the-art maritime terminal at Sohar Industrial Port.
MUSCAT: In a strategic move to bolster its long-term growth and expansion plans, global mining giant Vale S.A., through its subsidiary Vale International S.A., has signed a binding agreement with a subsidiary of Apollo Global Management (Apollo), a premier alternative asset management and retirement services provider.
The deal grants Apollo a 50% equity stake in Vale Oman Distribution Centre (VODC) for $ 600 million. The transaction is anticipated to close by the end of the second half of 2024, contingent on standard regulatory approvals. This sale aims to maximise returns and monetize Vale's global assets.
VODC operates a state-of-the-art maritime terminal at Sohar Industrial Port, complete with a large deep-water jetty and an integrated blending and distribution centre capable of handling 40 million tonnes per year (Mtpy). Under the agreement, Vale will maintain significant influence over VODC operations through a joint control structure, ensuring no changes to the organizational structure or workforce.
Nasser al Azri, Chief Executive Officer of Vale Oman said, “The deconsolidation of Vale Oman Distribution Center signifies an important step forward that will enable us to achieve our ambitious long-term growth and expansion plans in the Sultanate. It underscores our commitment to supporting the nation's economic diversification strategy and empowerment for social development.”
He further elaborated, “Optimising capital allocation through an asset-light operating model provides greater efficiency and agility that strengthens our competitiveness and strategic position. This will enable us to navigate market dynamic, capitalize on emerging opportunities and solidify our leadership in the industry.”
Vale will continue to fully own and control Vale Oman Pelletizing Company (VOPC), which is integral to producing high-quality iron ore pellets used in steel production and various other industries, including construction, manufacturing, and technology.
Over the past 17 years, Vale has made substantial contributions to the Sultanate’s evolving economic landscape, fostering sustainable social value by creating jobs, training local talent, and enhancing the local supply chain. This latest strategic transaction underscores the nation's vital role in the global mining industry, paving the way for new growth and prosperity opportunities.
The deal grants Apollo a 50% equity stake in Vale Oman Distribution Centre (VODC) for $ 600 million. The transaction is anticipated to close by the end of the second half of 2024, contingent on standard regulatory approvals. This sale aims to maximise returns and monetize Vale's global assets.
VODC operates a state-of-the-art maritime terminal at Sohar Industrial Port, complete with a large deep-water jetty and an integrated blending and distribution centre capable of handling 40 million tonnes per year (Mtpy). Under the agreement, Vale will maintain significant influence over VODC operations through a joint control structure, ensuring no changes to the organizational structure or workforce.
Nasser al Azri, Chief Executive Officer of Vale Oman said, “The deconsolidation of Vale Oman Distribution Center signifies an important step forward that will enable us to achieve our ambitious long-term growth and expansion plans in the Sultanate. It underscores our commitment to supporting the nation's economic diversification strategy and empowerment for social development.”
He further elaborated, “Optimising capital allocation through an asset-light operating model provides greater efficiency and agility that strengthens our competitiveness and strategic position. This will enable us to navigate market dynamic, capitalize on emerging opportunities and solidify our leadership in the industry.”
Vale will continue to fully own and control Vale Oman Pelletizing Company (VOPC), which is integral to producing high-quality iron ore pellets used in steel production and various other industries, including construction, manufacturing, and technology.
Over the past 17 years, Vale has made substantial contributions to the Sultanate’s evolving economic landscape, fostering sustainable social value by creating jobs, training local talent, and enhancing the local supply chain. This latest strategic transaction underscores the nation's vital role in the global mining industry, paving the way for new growth and prosperity opportunities.