OCI rises on over $2 bln deal to sell methanol business

Methanex

09/09/2024 08:36

** Shares in Dutch green fuel-maker OCI Global  OCI.AS  rise
2.8% after Canadian methanol producer Methanex  MX.TO  on Sunday
said it would buy OCI's methanol business in a $2.05 bln deal
    ** The deal includes $1.15 bln in cash, the issuance of 9.9
mln shares of Methanex valued at $450 mln and about $450 mln in
debt and leases
    ** OCI will become the second-largest shareholder of
Methanex with an about 13% stake
    ** "Our NTM EBITDA forecast for Methanol is $245mn, which
implies a transaction value of c.8.4x EBITDA. This compares to
our valuation of $1.3bn (within our SOTP), which implies an
upside potential of c. ~$750mn," Jefferies says
    ** ING also views the valuation of the transaction as
supportive
    ** Degroof Petercam says that enterprise value price
received is broadly in line with the most recent value used in
its sum of the parts (SOTP) of $2.02 bln

 (Reporting by Michal Aleksandrowicz)
 ((michal.aleksandrowicz@tr.com))