DOHA: Qatar Industrial Manufacturing Company (QIMC) announced the completion of the acquisition of the foreign partner’s stake in Qatar Plastic Products Company (QPPC) amounted to 33.33 percent, raising its share in the company’s capital to 66.66 percent.

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, QNA reported.

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 became the controlling shareholder in the capital structure of QPPC, as QIMC owns 66.66 percent, and Qatar Petrochemical Company (Qapco) owns the remaining 33.34 percent.

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 QR4.5m 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 percent) of the company’s capital, thus increasing its share capital to 66.66 percent.

QIMC, in July, had announced a net profit of QR108.2m for the first half of this year (H1, 2018). Earnings per Share (EPS) stood at QR2.28 compared to QR2.39 for the same period in 2017.

QPPC was established in 2000 with a capital of QR27m which was raised to QR41.1m in 2014 to finance the addition of a production line for thermally treated wood platforms.