MOSCOW (MRC) - UAE sovereign wealth fund Mubadala Investment Company is buying 1.9% of SIBUR Holding, reported Interfax, citing Mubadala Investment's statement.
The terms of the deal were agreed upon prior to TAIF joining SIBUR.
The announcement did not disclose the terms of the purchase, but it was noted that it is Mubadala's largest investment in Russia.
The deal is a continuation of a long-standing partnership between the companies. In 2015, the fund invested in SIBUR's logistics terminal in Ust-Luga, and also participated in debt financing of ZapSibNefteKhim, said the investor.
At present, Leonid Mikhelson (31%) is the largest shareholder of SIBUR, Gennady Timchenko has 14.45%, Chinese Sinopec and the Silk Road Fund have 8.5% each, SOGAZ has 10.625%, the current and former top management has 12.325%, TAIF shareholders - 15%.
During the merger with TAIF, the merged company was valued at Rb1.9 trillion, or USD26.8 billion. Hence, the cost of the 1.9% stake may be about USD0.5 billion.
As MRC reported earlier, in October 2021, SIBUR closed the deal to acquire 100% of TAIF JSC, which includes Nizhnekamskneftekhim, Kazanorgsintez and TGK-16.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,868,160 tonnes in the first nine months of 2021, up by 18% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,138,510 tonnes in January-September 2021, up by 30% year on year. Supply of propylene homopolymer (homopolymer PP) and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding statistical copolymers of propylene (PP random copolymers) decreased significantly.
SIBUR manufactures and sells petrochemical products in the Russian and international markets in two business segments: olefins and polyolefins (polypropylene, polyethylene, BOPP, etc.), as well as plastics, elastomers and intermediate products (synthetic rubbers, expanded polystyrene, PET, etc.).
MRC