Advent Explores Deal to Take Over Oman’s OQ Chemicals

May 3, 2024 | News

Advent International is in talks with Oman about a potential move to inject fresh capital into OQ Chemicals in exchange for a majority stake in the company, people familiar with the matter said.

The private equity firm is proposing to provide as much as $250 million of new equity into OQ Chemicals, according to the people, who asked not to be identified discussing confidential information. A deal would see Advent take control of OQ Chemicals while its current owner, Oman state energy company OQ SAOC, would hold the remainder, they said.

OQ Chemicals has been searching for a solution after OQ recently signalled it wouldn’t be providing any further funds to the business, Bloomberg News has reported. The decision threw plans to refinance the company’s outstanding €475 million ($507 million) and $435 million term loans coming due this October into disarray.

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Advent is still discussing details, including the precise investment amount and stake size, the people said. OQ Chemicals has been studying a range of options, including potential solutions proposed by its creditors, and there’s no certainty of a deal, one of the people said.

Products made by OQ Chemicals are used in cosmetics, lubricants, printing inks and flavorings. Like many in the sector, it has seen a drop in demand as customers reduced inventories, according to a December report from S&P Global Ratings. The company has also faced headwinds in recent years from rising natural gas prices and financing costs.

Representatives for Advent and OQ Chemicals declined to comment, while a spokesperson for OQ couldn’t immediately be reached for comment outside regular business hours in Muscat.

 

Read more:Yahoo Finance

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