The Oman Investment Authority (OIA) has begun the process of selling its majority stake in Oman Cement Company to Hong-Kong based strategic investor Huaxin Cement Company Limited.
"The exit from the Oman Cement Company comes within the framework of the authority's plan to achieve several goals, one of which is to attract foreign investments to the Sultanate of Oman," said Ibrahim Saeed al Eisri, Director of the Private Equity Department at the Omani Investment Authority, in a statement to ONA.
Oman Cement added in a filing that the transaction is subject to certain conditions, including Oman and People's Republic of China regulatory approvals and filings. The transaction is scheduled to close on June 1, 2023.
Publicly listed Oman Cement noted that the upfront fee payable at the time of execution was $193.1 million, representing 59.58 per cent of the company's share value on December 31, 2022, according to the stock purchase and sale agreement.
In addition to being listed on the Shanghai and Hong Kong Stock Exchanges, Huaxin Cement Co., Ltd. is among the top 10 cement producers in the globe. Its use of contemporary technologies will help Oman Cement expand its operations, improve the efficiency of its production lines, raise its competitiveness locally and regionally, and improve the overall perception of the Omani industrial sector.
The move by the Oman Investment Authority (OIA), the Sultanate of Oman's integrated sovereign wealth fund, is in line with its strategy to increase investments across its large portfolio in 2023 while exiting some other investments as part of an investment alignment strategy.
The plan calls for the exit of eight investments in 2023, with three in the energy sector, three in aviation, industry, and tourism, and two in communications and information technology, with returns exceeding RO 500 million.
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