ADNOC sells stakes in listed companies to XRG, the international arm of ADNOC

Abu Dhabi National Oil Company announced on Thursday that it had transferred its shares in a number of its listed subsidiaries, to XRG International Investments, its international investment division for which it has ambitious plans for growth.

The state-owned oil giant stated that the transfers of stakes, which include ADNOC Distribution and ADNOC Drilling as well as ADNOC Gas and ADNOC Logistics & Services will not impact the operations, leadership, or strategic direction, including dividend policies, of the companies. ADNOC has a 100% share in XRG, so the ultimate control won't change.

ADNOC stated that "these internal transfers will further enhance XRG's financial position and long-term growth, by providing access to stable and appealing dividend streams, which are supported by the listed company's existing disciplined capital return and growth agendas."

ADNOC stakes in ADNOC Gas, ADNOC Distribution and ADNOC Logistics & Services have been transferred via off-market transactions at the Abu Dhabi Securities Exchange. ADNOC Drilling is expected to follow, pending regulatory approvals.

ADNOC said that its entire stake in Fertiglobe, a fertilizer manufacturer, is held by XRG. It confirmed its intention to transfer the stake it holds in the Borouge Group International to XRG after the transaction has been completed. BGI will be created by the merger between Borouge and Austrian Borealis. Borealis will also purchase Canada's NOVA chemicals.

XRG, ADNOC’s international energy investment vehicle, will be launched in November 2024. It will focus on natural gases, chemicals, and scalable solutions. (Reporting and writing by Md. Manzer Hussain, Ahmed Elimam and Yousef Sabah; editing by Sharon Singleton & Susan Fenton).

(source: Reuters)