Dhunseri buys out Egyptian partner’s stake in JV firm for Rs 90 crore – Dhunseri Egyptian Indian Polyester Company SAE EIPET - Arhive
Dhunseri Egyptian Indian Polyester Company SAE EIPET Dhunseri Egyptian Indian Polyester Company SAE EIPET Dhunseri Egyptian Indian Polyester Company SAE EIPET Dhunseri Egyptian Indian Polyester Company SAE EIPET
Dhunseri buys out Egyptian partner’s stake in JV firm for Rs 90 crore
ET Bureau|
KOLKATA: Chandra Kant Dhanuka-owned Dhunseri PetrochemNSE -9.99 % is buying out its Egyptian partner’s stake in the joint venture Egyptian Indian Polyester Company SAE (EIPET) for roughly Rs 90 crore.
As per the ‘share purchase agreement’ entered into between the two partners, Dhunseri Petrochem is acquiring 43,700 equity shares (representing 23% stake) of EIPET from Egyptian Petrochemicals Holding Company (ECHEM) at par value in seven tranches. The last tranche will be bought in 2023.
While Dhunseri Petrochem is the majority partner in the Egyptian company with a 70% stake, Egyptian firms, ECHEM and Engineering for the Petroleum & Process Industries (ENPPI) own 23% and 7% respectively. Total value of the JV stake is pegged at $17 million (approximately ?110 crore). IFC Washington, Commercial International Bank (CIB) and Ahil United Bank, Egypt are the lenders.
Post acquisition of ECHEM’s shares, Dhunseri Petrochem will own 93% stake in the Egyptian JV. The group has not taken any decision on buying out their second JV partner, Engineering for the Petroleum & Process Industries which holds 7% of the Egyptian firm’s equity, Dhanuka added.More on EIPET
Egyptian-Indian Polyester Company (EIPET) Company Profile
Egyptian Indian Polyester (EIPET) is constructing a polyethylene terephthalate (PET) resin plant in the port town of Ain Sokhna, Egypt. The new production facility will manufacture PET resin to be used to make packaging bottles for food and fast moving consumer goods (FMCG).
Construction of the $160m facility commenced in June 2011 and is expected to be completed by the end of 2012.
The plant will produce 420,000mt of PET plastic chips a year. About 20% of the produce will be used locally and the remaining will be exported to European and North American markets. The plant is expected to generate $700m in revenues when fully operational.
The PET resin plant will contribute towards the local community by creating 800 jobs during construction and another 500 permanent jobs when fully operational. In addition, it will create foreign exchange reserves for Egypt.
Facility details:
The plant will include PET production units, two HTM heaters, four monoethylene glycol (MEG) tanks (20m diameter and 16m height, three chimneys and six PET chip storage silos (6m diameter and 32m height).
In addition to the main production building, the plant will have two administrative buildings, two utility buildings, a utility substation, two raw water and fire water tanks, high tension power room, two weigh bridge rooms, two effluent treatment plants, two cooling towers and raw material and finished goods storage rooms.
During the process of PET resin production, the plant will generate 124t/d of waste water which will be treated and recycled for further use.
The other solid and hazardous waste resulting from the plant will be transported to the disposal centre in Alexandria for recycling and disposal.
Finance:
IFC has committed $35m towards construction of the plant. This loan was approved in May 2011.
In addition, the Commercial International Bank and Ahli United Bank have provided $65.5m of capital and $11.3m of working capital to EIPET.
Related Topics
-Global PET Resin players – Global PET Resin Market 2017 – Lotte Chemical, M&G Chemicals