Subsidiary of Emirati ADQ interested in buying 25% of Kima

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Egypt - Informed government sources told Daily News Egypt that a subsidiary of ADQ Holding, one of the sovereign investment funds in Abu Dhabi, was interested in purchasing a stake ranging between 20-25% of the Egyptian Chemical Industries Company (Kima).

The sources added that the option of selling a share of the fertilizer industry company is among the financing alternatives offered to provide financing for the second phase of the Kima 2 project.

The sources expect the second phase of Kima 2 project to be completed in the next three years, with investments amounting to $297m. The award order would be issued this week to implement the nitric acid and ammonium nitrate project, with a production capacity of 600 tonnes of acid per day and 665 tonnes of ammonium nitrate for industrial purposes.

The board of directors of Kima approved the offer submitted by the Italian company, Technomont, last week to launch the project.

The project aims to produce ammonia and urea with natural gas instead of electrolysis of water to rationalize energy consumption, improve product quality with the addition of new products, and increase production capacity to meet the needs of the Egyptian market and export abroad.

The sources indicated that the company negotiated with the contractor to reduce the total value of the project from $323m to $297m.

Kima achieved a net profit of EGP 1.1bn during the period from July to March 2023, compared to profits of EGP 481.94m in the same period of last fiscal year.

The company’s revenues rose during the nine months to EGP 5.13bn, compared to EGP 3.12bn in the same period of the last fiscal year.