Methanol producer Methanex Corp. (TSX:MX) will sell a 10% share in its Egyptian methanol plant to Arab Petroleum Investments Corp. (APICORP) for $110 million.
The Arabian development bank already owns a 7% share in EMethanex (Egyptian Methanex Methanol Company S.A.E.) Methanex holds a majority share in EMethanex.
"This is a win-win arrangement,” Methanex CEO John Floren said in a press release. “The transaction aligns with APICORP's investment strategy, and EMethanex will benefit from APICORP's growing support.
“In Egypt, we have built a world-class methanol facility, and we believe our Egyptian operations will continue to create value for shareholders today and well into the future."
APICORP CEO Ahmad Bin Hamad Al Nuaimi said, "This investment supports our strategy of deepening our support for midstream and downstream sectors in the Arab energy industry.
“The EMethanex plant is a world-class methanol facility and we expect it to generate strong value for our shareholders. This transaction also further expands our support for Egypt's hydrocarbon industry."
In addition to EMethanex, Methanex owns methanol plants in Medicine Hat, Trinidad, New Zealand and Chile. It also owns its own fleet of 18 tanker, which ship methanol to global customers and backhauls other chemicals.
Methanex makes methanol from natural gas, and low gas prices in North America has recently spurred growth. The company is in the midst of relocating an idled methanol plant in Chile to Louisiana, at a cost of $550 million.
