OCI Global Announces Agreement for the Sale of its Global Methanol Business to Methanex

About OCI Methanol

OCI Methanol is a leading methanol producer in the US and through OCI HyFuels, a leading producer and distributor of green methanol today. OCI Methanol's total productive capacity comprises the following assets:

OCI Methanol's assets are in highly strategic developed market locations across the United States and Europe with access to stable and low-cost USGC natural gas enabling first quartile cost curve positions, and with extensive distribution and storage capabilities near major industrial demand centres and key bunkering hubs.

OCI HyFuels is a pioneering first-mover in providing the road, marine, power, and industrial sectors with renewable and low-carbon fuel alternatives to meet evolving regulatory requirements. The business includes the production and distribution of green methanol, bio-MTBE, renewable natural gas, and ethanol.

Methanol and ammonia are key enablers of the hydrogen economy and the most logical hydrogen fuels, key to decarbonizing hard to abate industries including marine. The Transaction will enable Methanex to drive and accelerate the transition to a hydrogen economy.

Nassef Sawiris, Executive Chairman of OCI commented: "We are pleased with the opportunity to achieve a significant ownership position in Methanex and are highly confident in Methanex's ability to create enduring value for shareholders. As the global leader committed to safety and operational excellence, we identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023."

Ahmed El Hoshy, CEO of OCI commented: "This is an outstanding strategic fit for Methanex. I would like to thank my OCI colleagues for their efforts in building such a strong globally competitive methanol platform, ultimately leading to this transaction. We look forward to working closely with Methanex's management to fully integrate the business and to ensure continuity and successful stewardship through closing and beyond."

Hassan Badrawi, CFO of OCI commented: "Combined with the recent divestitures, OCI is crystallizing approximately USD 11.6 billion of expected tax-free gross proceeds. The resulting financial profile provides significant flexibility to achieve all OCI's goals, including the ability to meaningfully return capital to shareholders."

Bashir Lebada, CEO of OCI Methanol Group commented: "This transaction is testament to the efforts of an exceptionally talented group across OCI Methanol's platform, who have prioritized value creation for the past 14 years. We are proud of OCI's contributions to new applications, and in pioneering the use of methanol as a fuel globally, Methanex is well positioned to leverage OCI HyFuels to accelerate the transition to a low-carbon economy. Our highly profitable 350kt synloop-based ammonia production is also optimally placed to offer synergistic diversification, without meaningful capex. We are confident that the OCI team will pursue this work at pace with Methanex moving forward."

A conference call for investors and analysts will be hosted at 8am ET / 1pm BST / 2pm CET on 10 September.

Morgan Stanley & Co. International plc is serving as exclusive financial advisor to OCI on the transaction. A&O Shearman is acting as its legal advisor.

This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.

About OCI Global

We are a global leader in nitrogen, methanol, and hydrogen, driving forward the decarbonization of the energy-intensive industries that shape, feed and fuel the world. OCI's production capacity spans four continents and comprises approximately 13.5 million metric tons per year of hydrogen-based products including nitrogen fertilizers, methanol, biofuels, diesel exhaust fluid and melamine. OCI is headquartered in the Netherlands and listed on Euronext in Amsterdam. Learn more about OCI at www.oci-global.com. You can also follow OCI on LinkedIn.

About Methanex

Methanex is a Vancouver-based, publicly traded company and is one of the world's largest suppliers of methanol. Methanex shares are listed for trading on the Toronto Stock Exchange in Canada under the trading symbol "MX" and on the NASDAQ Global Market in the United States under the trading symbol "MEOH".  Methanex can be visited online at www.methanex.com.

Contact Details

Sarah Rajani CFA, Vice President Investor Relations & Communications
Email: [email protected] 

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