Wednesday, Nov 14, 2007
BEIRUT (Zawya Dow Jones)--Saudi-based Arabian Industrial Fibers Co., or Ibn Rushd, may transform more than 4.9 billion Saudi riyals ($1.31 billion) of debt into equity and then launch a 40% initial public offering at a later time, pan-Arab daily Asharq al Awsat reported Wednesday.
Ibn Rushd's shareholders, led by major shareholder Saudi Basic Industries Corp. (2010.SA), or Sabic, have made these proposals to stop the erosion of the loss-making company's capital, the paper said, citing person familiar with the situation.
The shareholders also aim to diversify into new activities and reduce the output of present products, the report said.
All of these recommendations are expected to be approved by the end of the current year, it said.
Sabic, the largest petrochemical firm in the world by market capitalization, owns about 48% of Ibn Rushd, which has a capital of SAR3.55 billion and whose accumulated losses represent 75% of its capital.
Newspaper Web site: http://www.asharqalawsat.com
-By Beirut bureau, Zawya Dow Jones, 961 1 985757, beirut@zawya.com
Copyright (c) 2007 ABQ Zawya Ltd.
(END) Dow Jones Newswires
14-11-07 0348GMT
