Advertisement
|06 December, 2018

Saudi Sipchem, Sahara sign binding deal for merger

Sipchem made a recommended offer to acquire all of the issued shares in Sahara in exchange for the issue of new shares

Image used for illustrative purpose. The sun sets behind a oil derek January 15, 2003 near the Saudi Arabian border, Kuwait.

Image used for illustrative purpose. The sun sets behind a oil derek January 15, 2003 near the Saudi Arabian border, Kuwait.

Getty Images/Joe Raedle

Riyadh —   Saudi International Petrochemical Company (Sipchem) on Thursday announced that it has entered into a legally binding agreement with Sahara Petrochemical Company to implement a proposed business merger of equals.

Sipchem made a recommended offer to acquire all of the issued shares in Sahara in exchange for the issue of new shares in Sipchem, according to a statement to the Saudi Stock Exchange (Tadawul).

Sipchem said that the deal will be implemented in accordance with the applicable rules and regulations of the Capital Market Authority (CMA) and the companies regulations.

Advertisement

Upon completion of the merger deal, all Sahara’s shares will be delisted from the Saudi bourse and Sahara will become a wholly-owned subsidiary of Sipchem, the Saudi petrochemical manufacturer said.

During the first nine months of 2018, Sipchem achieved a 98.9% year-on-year surge in net profits after zakat and tax to SAR 543 million ($144.71 million), versus SAR 273 million ($72.75 million).

From January to September, Sahara’s net profits after calculating Zakat and tax hiked 51.5% to SAR 530 million, compared to SAR 349.7 million in the corresponding period of 2017.

Source: Mubasher

All Rights Reserved - Mubasher Info © 2005 - 2018 Provided by SyndiGate Media Inc. (Syndigate.info).

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.