Qatar Industrial Manufacturing Company (QIMC) announced the completion of the acquisition of the foreign partner's stake in Qatar Plastic Products Company (QPPC) amounting to 33.33%, raising its share in the company's capital to 66.66%.
QIMC chief executive officer Abdulrahman al-Ansari said in a statement published on the Qatar Stock Exchange website that the completion of the acquisition reclassified the investment in QPPC to a subsidiary rather than an associate.
The transaction was financed by a local bank with the guarantee of investment returns with a medium-term loan under very competitive terms, he added.
Al-Ansari pointed out that after the acquisition, QIMC became the controlling shareholder in the capital structure of QPPC with a 66.66% holding, with Qatar Petrochemical Company (Qapco) owning the remaining 33.34%.
He pointed out that this is part of QIMC's strategy to improve the return on its investments and the consequent increase in profits, whereas the share of the QIMC's profits last year was QR4.5mn and this share is expected to double by the end of the year as a result of the acquisition.
It is noted that there is no debt burden on QPPC or any obligations on its shareholders.
In May, QIMC announced the purchase of the foreign partner's share in QPPC (33.33%) of the company's capital, thus increasing its share capital to 66.66%.
QPPC was established in 2000 with a capital of QR27mn, which was raised to QR41.1mn in 2014 to finance the addition of a production line for thermally treated wood platforms.
QPPC is engaged in the manufacture and marketing of plastics, pipes, hoses and plastic bags with special specifications, as well as multi-purpose plastic wood.
Qapco is one of the most important shareholders and commercial partners in QPPC.