MPHC to renew QVC’s joint venture for another term with a new partner, while maintaining its current ownership

Doha, Qatar, 4 October 2022 – The Board of Directors of Mesaieed Petrochemical Holding Company (“MPHC” or “the Company”; QE ticker: MPHC) has approved signing of a ‘Principles Agreement’, whereby a new joint venture agreement (JVA) for Qatar Vinyl Company Q.P.J.S.C. (QVC)  will be signed between MPHC and Industries Qatar (IQ) following the expiry of existing JVA. 

QVC is a joint venture currently owned by MPHC with a 55.2% stake, Qatar Petrochemical Company Q.P.J.S.C. (QAPCO) with a 31.9% stake and QatarEnergy with a 12.9% stake. QVC’s JVA is expiring on 1st May 2026. 

At the expiry of the JVA, QAPCO and QatarEnergy will transfer their entire stakes in QVC to IQ with immediate effect. There will be no impact to MPHC’s equity ownership in QVC and MPHC will continue to own the same percentage of shareholding. 

The new JV partners will be MPHC and IQ, with 55.2% and 44.8% stakes in QVC, respectively. While QAPCO will continue to operate QVC, including the new PVC plant, under a plant operating and services agreement. 

Funding of the new PVC plant

As per the Principles Agreement, the total CAPEX outlay relating to the new PVC plant will be shared between MPHC and IQ in a ratio of 55.2% and 44.8%, respectively, equivalent to their share in QVC under the new JVA. An EPC contract has already been awarded for the new PVC plant, and the plant’s construction is expected to be completed by mid-2025. 

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