RIYADH, 21 March 2007 -- The Board of Directors of the Saudi International Petrochemical Company (Sipchem) has decided to increase the company's share capital to SR2 billion from SR1.5 billion.
In a board meeting held here recently, Abdulaziz Al-Zamil, chairman of Sipchem's board of directors, said the board also recommended that one bonus share will be granted for each three shares owned by a shareholder.
Al-Zamil said the total number of issued shares will increase by 33 percent , i.e., from 150 million shares to 200 million shares.
Shareholders entitled to the bonus shares will be those who have been duly registered in the company's register of shares with the Securities Deposits Center. The date of the extraordinary general assembly meeting will be announced at a later date, Sipchem chairman said.
The company has started the construction of the acetyls complex at its site in Jubail.
The complex comprises three facilities -- the 460,000-ton per annum (mtpa) acetic acid plant, the 330,000 mtpa vinyl acetate monomer plant and the 345,000 mtpa carbon monoxide plant, in addition to the utilities and offsite port facilities at King Fahd Industrial Seaport in Jubail.
To support the building of the new complex, it has signed a $560 million (SR2.1 billion) loan facility with nine regional banks last December.
"The amount of loan will be scaled down once the PIF loan is signed in the future," Acetyls Complex president Abdullah Al-Saadoon said.
He indicated that Sipchem had already started the process of converting the loans to Islamic (Ijara lease) structure in line with the company's long-term goals.
By Javid Hassan
© Arab News 2007
