Kuwait City, December 2014: Ibrahim AlQadhi: the transaction comes as a result of a successful partnership that lasted more than two decades. Gulf Investment Corporation (GIC) today announced the signing of an agreement to sell part of its 33% shareholding in Cristal to National Industrialization Company (Tasnee). The agreement dully signed by both parties stipulates that the sale of the 13% shareholding in Cristal will be at a transaction value of about USD 482 million. Subsequently, after completing the sale, GIC will continue to maintain a 20% holding in Cristal. GIC recently received the purchase offer from Tasnee and worked with an internationally reputed investment bank to value its shareholding in Cristal and structure the deal accordingly.

GIC invested in Cristal since its inception in 1988, when it was and still is the sole producer of titanium dioxide in the region. Titanium dioxide is one of the main materials used in the manufacture of paints, plastics, paper and other industries. Throughout the years, GIC has continuously supported Cristal in the completion of its expansion strategy resulting in it becoming, since 2007, the second largest global producer of titanium dioxide, having seven production plants in several countries around the world (Saudi Arabia, United Kingdom, France, the United States, Australia, Brazil ). This has allowed Cristal to achieve sales of about USD 2 billion annually, with total shareholder funds of USD 1.9 billion as of June 2014.

On this occasion, Mr. Ibrahim Al Qadhi, CEO of Gulf Investment Corporation said “Over the years, GIC has participated in many industrial projects in the region. These projects now have a large footprint on the development of various industries, the import and establishment of the latest technology and the employment of GCC nationals. GIC and its partner, Tasnee, have worked together to support Cristal’s growth regionally and globally through the acquisition of several companies and development of internal expansion projects. That support has resulted in projecting Cristal into the ranks of major global companies, and we will continue to support Cristal in the years to come. GIC has a positive relationship with Tasnee, which is one of the largest chemical and petrochemical companies in the region, and we are pleased to see our partners enjoy plenty of success and prosperity”.

GIC is a leading financial institution equally and wholly owned by the six Gulf Cooperation Council (GCC) countries and enjoys a credit rating of A2 from Moodys and A- from Fitch which reflects the strength of the shareholders, the durability of its financial position, its outstanding financial performance, and favorable projections in achieving success. Established in 1983 to promote the role of the private sector and support economic development in the GCC, GIC has invested in more than 50 projects across multiple industries in partnership with both private and government entities. In Saudi Arabia, GIC has invested in several projects including Al-Shuqaiq Water and Electricity Company, Al-Jubail Water and Electricity Company, Bitumat and Virgin Mobile Middle East and Africa (VMMEA), which operates in the Mobile Virtual Network Operator (MVNO) sector of the mobile telecommunications industry in the MEA region, and the exclusive regional arm of global leader Virgin Mobile. VMMEA launched its services in Saudi Arabia on 30 September 2014 in alliance with the Saudi Telecom Company (STC).