October 16, 2024 [Storage Terminals Magazine]- OCI Global, a leading global producer and distributor of hydrogen products, has announced the successful closing of its divestment of a 50 percent +1 share stake in Fertiglobe to Abu Dhabi National Oil Company P.J.S.C.
The transaction follows the fulfillment of all necessary legal and regulatory conditions, customary closing adjustments, and approval from OCI shareholders. As a result, ADNOC’s shareholding in Fertiglobe has increased to 86.2 percent, while the free float traded on the Abu Dhabi Securities Exchange remains at 13.8 percent.
Fertiglobe’s Board of Directors has re-appointed Mr. Ahmed El-Hoshy as CEO, effective from 15 October 2024. Mr. El-Hoshy has been the CEO of Fertiglobe since 2021, where he played a pivotal role in the company’s initial public offering, navigating challenging commodity market cycles, and overseeing its consolidation with ADNOC. His leadership was instrumental in establishing Fertiglobe as a global leader in low-carbon ammonia. Fertiglobe’s broader executive team will remain in place.
Fertiglobe, headquartered in Abu Dhabi, was formed in 2019 as a strategic partnership between OCI and ADNOC, with a subsequent listing on the ADX in 2021. The partnership established Fertiglobe as a first-mover platform in ammonia and urea export, recognised for its superior cash conversion throughout commodity cycles. Since its IPO, Fertiglobe has returned USD 2.42 billion in dividends to shareholders, making it one of the best performers on the ADX, with a Total Shareholder Return exceeding 50 percent.
Nassef Sawiris, executive chairman of OCI, described the closing as a significant milestone in both Fertiglobe’s journey and OCI’s partnership with ADNOC. He expressed confidence in ADNOC’s ability to guide Fertiglobe into its next phase, particularly as demand for low-carbon solutions and decarbonisation opportunities grow globally. Sawiris praised Mr. El-Hoshy’s contributions, highlighting his role in driving both OCI and Fertiglobe’s growth, making him an ideal fit for Fertiglobe’s future development.
Ahmed El-Hoshy, commenting on his re-appointment, said: “I am incredibly proud of Fertiglobe’s achievements since the IPO and grateful to all the OCI and Fertiglobe employees who contributed to this historic moment. Today’s closing marks a strategic evolution in Fertiglobe’s journey toward independence and a critical step in OCI’s mission to create long-term sustainable value. I look forward to joining ADNOC’s ecosystem and driving future growth in the low-carbon ammonia value chain.”
Hassan Badrawi, CEO of OCI, praised the Fertiglobe platform built since its inception in 2007 and the fruitful partnership with ADNOC since 2019. He noted that the platform has seen greenfield and brownfield projects, strategic mergers and acquisitions, and a highly successful IPO, culminating in the strategic sale to ADNOC. Badrawi expressed confidence that Fertiglobe is well-positioned for its next phase of growth and wished Mr. El-Hoshy continued success in his leadership role.
This transaction marks a significant step in OCI’s ongoing strategy to create long-term sustainable value for stakeholders while establishing Fertiglobe as a key player in the global low-carbon ammonia market under ADNOC’s stewardship.
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