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Shareholders of the National Petrochemical Company (Petrochem) have approved Saudi Industrial Investment Group’s (SIIG) acquisition offer that will create one of the region’s largest petrochemical players.
Last September, the rival firms signed a non-binding agreement on a proposed merger which will reportedly create an entity with an $11.2 billion market capitalisation.
In a statement to the Saudi Stock Exchange (Tadawul) on Monday, Petrochem said its shareholders voted to accept the offer of SIIG to acquire all Petrochem shares it does not yet own. The 50 percent stake of Petrochem is already owned by SIIG.
As part of the deal, SIIG would issue 1.27 of its shares to Petrochem’s shareholders in exchange for each share in Petrochem.
(Writing by Cleofe Maceda; editing by Seban Scaria)
