OMV Company News - Purchase of 39% stake in Borealis for USD 4.7 bn
Following the announcement on March 6 regarding the purchase of an additional stake in Borealis, OMV and Mubadala signed today an agreement that will give OMV a controlling stake in Borealis (75%), while Mubadala (OMVs second largest shareholder with 25%) shall retain a 25% interest in Borealis. The closing of the purchase is expected by end-2020 and is subject to regulatory approvals.Dividends from Borealis: OMV is entitled to all dividends in relation to the additional shares in Borealis distributed after December 31, 2019. Borealis realised a net profit of EUR 872 mn and based on 2017-18 payouts of 91%, we could expect OMV to receive almost EUR 600 mn in dividends in 2020e (for 75% ownership). At end-June 2019, Borealis had a net debt of EUR 1.45 bn. Borealis owns 40% in the worlds largest polyolefins site, which based on our calculation has contributed with ca. EUR 390 mn to Borealis net profit in 2019 (some 45% of Borealis net profit).
OMV is an international energy company with activities in Exploration and Production (E&P), Refining and Marketing including petrochemicals (R&M), and Gas and Power (G&P). Co. explores and develops oil and gas resources and supply energy to over 100 million people. OMV has three operating segments: Exploration and Production (E&P), Refining and Marketing, including petrochemicals (R&M), and Gas and Power (G&P), as well as the segment Corporate and Other (Co&O).
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