The Gulf Investment Corporation (GIC) has signed an agreement to sell part of its 33 percent shareholding in Saudi Cristal to National Industrialization Company (Tasnee), the company announced on Sunday.
The agreement dully signed by both parties stipulates that the sale of the 13 percent shareholding in Cristal will be at a transaction value of about USD 482 million, Ibrahim Al-Qadhi, CEO of Gulf Investment Corporation said.
Subsequently, after completing the sale, GIC will continue to maintain a 20 percent holding in Cristal.
After the GIC received the purchase offer from Tasnee, it worked with an internationally reputed investment bank to value its shareholding in Cristal and structure the deal accordingly, Al-Qadhi added.
According to the Al-Qadhi, GIC invested in Cristal since its inception in 1988, when it was and still is the sole producer of titanium dioxide in the region.
Throughout the years, GIC has continuously supported Cristal in the completion of its expansion strategy resulting in it becoming, since 2007, the second largest global producer of titanium dioxide, having seven production plants in several countries around the world, Saudi Arabia, UK, France, USA, Australia and Brazil.
This has allowed Cristal to achieve sales of about USD 2 billion annually, with total shareholder funds of USD 1.9 billion as of June 2014.
"Over the years, GIC has participated in many industrial projects in the region. These projects now have a large footprint on the development of various industries, the import and establishment of the latest technology and the employment of GCC nationals," Al-Qadhi said.
"GIC and its partner, Tasnee, have worked together to support Cristal's growth regionally and globally through the acquisition of several companies and development of internal expansion projects," he added. "That support has resulted in projecting Cristal into the ranks of major global companies, and we will continue to support Cristal in the years to come." "GIC has a positive relationship with Tasnee, which is one of the largest chemical and petrochemical companies in the region, and we are pleased to see our partners enjoy plenty of success and prosperity," Al-Qadhi noted.
GIC is a leading financial institution equally and wholly owned by the six Gulf Cooperation Council (GCC) countries and enjoys a credit rating of A2 from Moody's and A- from Fitch which reflects the strength of the shareholders, the durability of its financial position, its outstanding financial performance, and favorable projections in achieving success.
Established in 1983 to promote the role of the private sector and support economic development in the GCC, GIC has invested in more than 50 projects across multiple industries in partnership with both private and government entities.