TMK to pay $39.1 mln for 55% of Oman plant
MOSCOW. March 6 (Interfax) - TMK is paying $39.131 million for 55% of Gulf International Pipe Industry L.L.C. (GIPI, Oman), the company said in materials.
TMK had already paid $27.43 million of that amount before the end of 2012, according to the company's IFRS financials for 2012. It paid another $8 million in January-February 2013, leaving just $3.7 million more owing.
GIPI had $98 million in debt as of year-end and receivables totaling $8.89 million, including $546,000 that will have to be written off.
Goodwill from purchase of the company is estimated at $39.945 million, which is attributable to the Middle Eastern division of the company. It includes the sales subsidiary TMK Middle East FZCO and the Threading & Mechanical Key Premium L.L.C. service center, a joint venture with Emdad in the UAE.
GIPI has generated $16.075 million in revenue for TMK since its acquisition on December 2, 2012 and pretax profit of $1.135 million.
Currently GIPI supplies pipes to major oil and gas companies in the Gulf Cooperation Council (GCC) countries.
Other GIPI shareholders include: Oman Investment Corporation (OIC), Gulf Investment Corporation (GIC), Posco P&S.
TMK said it had reached agreement with the shareholders to manage the plant and its sales and to integrate it in the company's global production and sales network to maximize GIPI shareholder value.
TMK is a leading global manufacturer and supplier of steel pipes for the oil and gas industry, operating 24 production sites in the United States, Russia, Romania and Kazakhstan and two R&D centers in Russia and the USA. In 2011, TMK's pipe shipments totaled 4.23 million tonnes. The largest share of TMK's sales belongs to high margin oil country tubular goods (OCTG), shipped to customers in 85 countries.
The chief beneficiary is board chairman Dmitry Pumpyansky. The free float is 23%.
