DUBAI: Canada's Methanex agreed to sell a 10 percent stake in Egyptian methanol producer EMethanex to one of its joint venture partners Arab Petroleum Investments Corp (APICORP) for $110 million, APICORP said on Tuesday.
The move follows a series of Egyptian asset sales by other Western companies such as Apache Corp., which in August sold 33 percent of its Egyptian business to state-owned Chinese oil giant Sinopec for $3.1 billion, following investor concerns over its exposure there.
Political upheaval in Egypt since the overthrow of President Hosni Mubarak in 2011 has battered its economy, frightening away tourists and investors, and cutting into state finances.
APICORP, a development bank established by the Organization of Arab Petroleum Exporting Countries, said in a statement it already owned a 7 percent stake in EMethanex and would increase it to 17 percent.
The companies expect the sale to be finalised by the end of this year.
Methanex will continue to remain the operator and majority shareholder of EMethanex with just over 50 percent ownership.
The remaining 33 percent is held by the Egyptian government.
EMethanex operates a facility in northern Egypt with a capacity to produce 1.3 million tonnes of methanol a year.
Methanol, a liquid petrochemical produced mainly from natural gas and coal, is used in windscreen washer fluid, recyclable plastic bottles, plywood floors and synthetic fibers.
APICORP bought a 5.62 percent equity stake in Saudi-based Industrialization and Energy Services Co (TAQA) from Arabian Pipes Co (APC) earlier this month. (Reuters)