Riyadh – Saudi International Petrochemical Company (Sipchem) on Tuesday announced signing a deal with National Power Company (NPC) to acquire the latter’s 25% stake in International Gases Company (IGC), an affiliate of Sipchem.
The deal signed on Tuesday is subject to approval from regulatory authorities, other parties, and the annual general assembly, Sipchem said in a filing to the Saudi Stock Exchange (Tadawul).
Prior to the deal, Sipchem held a 72% stake in IGC. After the transaction is completed, Sipchem’s stake will rise to 97%.
On a side note, the Saudi petrochemical manufacturer said that Zamil Group Holding Company was a related party to the deal as it hold stakes in both Sipchem and NPC. This point was made as per the Saudi Capital Market Authority’s (CMA) regulations.
“The parties are now working together to close the conditions necessary to complete this transaction and plan to have done so within the next few weeks,” Sipchem added.
The petrochemical maker last reported a 65.1% year-on-year surge in profits to SAR 151.4 million in the first quarter of 2018 from SAR 91.7 million.
By 11:56 am Saudi time, Sipchem’s stock fell 0.78% to SAR 22.84.