Saudi SABIC extends JV with Japan’s JSMC for 20 years

The financial impact of the extension will take place in Q2-19

  
A man walks past the headquarters of Saudi Basic Industries Corp in Riyadh. Image used for illustrative purpose.

A man walks past the headquarters of Saudi Basic Industries Corp in Riyadh. Image used for illustrative purpose.

REUTERS/FAISAL NASSER

Riyadh – Mubasher: Saudi Basic Industries Corporation (SABIC) has received all regulatory approvals in relation to the extension of its joint venture (JV) with the Japan Saudi Arabia Methanol Company (JSMC), Inc. in Saudi Methanol Company (Arrazi) for 20 years.

Accordingly, SABIC’s share will be 75% and JSMC’s stake will stand at 25%, according to SABIC’s statement to the Saudi Stock Exchange (Tadawul) on Monday.

The financial impact of the extension will take place in the second quarter of 2019.

“Japan Saudi Arabia Methanol Company (JSMC), Inc. will pay SABIC $1.35 billion in three installments, ending in 2021,” SABIC said.

Moreover, the financial results of Arrazi will be consolidated based on the new ownership structure.

Source: Mubasher

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