Methanol Co Ltd: to cancel 7.4 bln won worth of own shares

OCI Global has completed the sale of its Global Methanol Business to Methanex Corporation for USD 1.6 billion on a cash-free, debt-free basis, comprising USD 1.3 billion in cash and USD 346 million in Methanex shares. The transaction, announced in September 2024, was finalized following regulatory and shareholder approvals. As part of the deal, OCI now holds a 12.9% stake in Methanex, making it the second-largest shareholder.

In conjunction with the sale, OCI plans to return up to USD 1 billion to shareholders through a combination of capital repayments and extraordinary cash dividends between 2025 and early 2026. The first tranche of USD 700 million is expected to be distributed by September 5, 2025, while the second tranche of up to USD 300 million will follow in late 2025 or early 2026.

The company also intends to launch a tender offer for its USD 600 million 6.700% Notes due 2033 within five business days of the transaction's closing. These actions are part of OCI’s broader strategy to enhance shareholder value, with over USD 7.4 billion returned to shareholders since 2021. The proceeds from the methanol business sale are expected to further strengthen OCI’s financial position and support its ongoing deleveraging efforts.