Abuhimed Alsheikh Alhagbani Law Firm (AS&H) in cooperation with Clifford Chance advised Saudi Basic Industries Corporation (SABIC) on the acquisition of an additional 25% stake in, and extension of the term of, its joint venture in Saudi Methanol Company (Ar-Razi) in the Kingdom of Saudi Arabia with the Japan Saudi Arabia Methanol Company Inc. (JSMC).
Ar-Razi develops, owns and operates a methanol production complex in the Kingdom of Saudi Arabia. SABIC purchased an additional 25% in Ar-Razi from JSMC for US$150 million, increasing its aggregate stake to 75% of Ar-Razi (the remaining 25% is owned by JSMC). SABIC also simultaneously extended its partnership with JSMC in Ar-Razi for 20 years, for which JSMC agreed to pay SABIC US$1.35 billion. A share purchase agreement was signed in December 2018 and the transaction closed in July 2019.
AS&H in cooperation with Clifford Chance advised SABIC on the share purchase agreement, revised shareholders’ agreement and a number of ancillary commercial agreements as well as the related antitrust filings in the Kingdom of Saudi Arabia and Japan.
The AS&H team was led by Majid Al-Sheikh (AS&H Partner and Head of Corporate) and Omar Rashid (Clifford Chance Partner seconded to AS&H) with Christian Both (Clifford Chance Counsel seconded to AS&H), Rizwan Butt (Clifford Chance Senior Associate, Dubai), Adnan Syed and Ahmad Al-Sadhan (both associates in Riyadh) providing support.
Additional support was provided by Clifford Chance’s global antitrust team and Japanese corporate team, including Tony Reeves (Partner, Brussels), Tatsuhiko Kamiyama (Partner, Tokyo), Jim Back (Counsel, Brussels), Masafumi Shikakura (Counsel, Tokyo),Tomas Pavelka (Associate, Brussels) and Hisao Ito (Associate, Tokyo).
Majid Al-Sheikh commented: “We are proud to have advised SABIC on this important transaction for the Kingdom and the region and would like to thank SABIC for putting their trust and confidence in our team on such an important mandate”.
Omar Rashid remarked: "Supporting SABIC on this strategic transaction has been extremely rewarding and has enabled us to reinforce our longstanding global client relationship with them".
AS&H in cooperation with Clifford Chance regularly advises Saudi-based and international clients on key corporate and ECM transactions and have recently advised Saudi British Bank (SABB) on its US$5 billion statutory merger with Al-Awwal Bank, Sahara on its business merger with Sipchem and Tenaris on its acquisition of a majority stake in Saudi Steel Pipe Company.© Press Release 2019
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.