27 October 2009 21:49 [Source: ICIS news]
TORONTO (ICIS news)--Abu Dhabi's International Petroleum Investment Co (IPIC) will share control of ?xml:namespace>
The decision to share control with OMV was part of a strategy to gain synergies between NOVA and other firms in the IPIC’s portfolio – including OMV and plastics major Borealis, NOVA said in response to an inquiry by ICIS news.
The objective is to create a new global polyolefins leader, NOVA said. IPIC acquired NOVA in a $2.3bn (€1.5bn) deal earlier this year.
IPIC and OMV would share control of NOVA “similar to their successful joint ownership and control arrangement for [Austria-based plastics major] Borealis,” NOVA said.
Borealis is jointly controlled by IPIC (64%) and OMV (36%), with OMV having veto rights regarding strategic commercial decisions, such as the appointment of senior management and the approval of the business plan and the budget.
To facilitate the sharing of control over NOVA, Borealis would acquire from IPIC 24.9% of NOVA’s share capital, subject to a share purchase agreement still to be negotiated between IPIC and Borealis.
Also, three new members would join NOVA’s board, NOVA said: Gerhard Roiss, deputy chairman of OMV’s executive board; David Charles Davies, chief financial officer of OMV; and Mark Garrett, chief executive of Borealis.
Earlier on Tuesday, the European Commission said it cleared an application by the parties to share control of NOVA.
In addition to its ownership of NOVA and its stake in Borealis, IPIC also holds about 19.6% in OMV.
($1 = €0.67)
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