Advent International is in talks with the Sultanate of Oman to inject new capital into OQ Chemicals; With the aim of acquiring the controlling stake in the company.

Advent will offer to buy a stake in OQ Chemicals worth up to $250 million. Under the deal, Advent seeks to acquire a majority stake in OQ, while OQ – the current owner and also the state-owned energy company in Oman – will retain the remaining stake.

According to Bloomberg News, OQ Chemicals is looking for a solution, especially after the parent company OQ indicated that it would not provide any additional funds to the subsidiary. This negatively affected the company's refinancing plans for the company's outstanding loans amounting to 475 million euros, equivalent to 507 million dollars, and term loans amounting to 435 million dollars due next October.

The products manufactured by OQ Chemicals are used in cosmetics, printing inks, flavorings and lubricants.

Demand for the company's products has decreased as customers reduce inventories, according to a report issued by S&P Global Ratings issued in December, in addition to the company having faced challenges recently as a result of rising natural gas prices and financing costs.

It is worth noting that OQ Chemicals, formerly known as Oxia, was owned by Advent, which owns production facilities in Europe, the United States, and China until 2013, and then sold it to OQ for 1.8 billion euros.

The company's obligations will be paid from the funds that Advent will pump to purchase OQ Chemicals, and will also be used to settle late interest payments and improve its balance sheet.

The Advent plan will open the way for OQ Chemicals and give it an opportunity to conclude a deal with lenders to roll over debt on modified terms, as well as help the company boost its cash flows.

It should be noted that the Omani company held talks with Apollo Global Management with the aim of obtaining a special loan regarding debt refinancing.