State-owned Saudi Aramco bought 2.1 billion shares of SABIC on the Saudi exchange, known as Tadawul, on Sunday to finalize the SAR259-billion ($69.1 billion) acquisition of a 70% stake in the petrochemical giant from Saudi sovereign fund, the Public Investment Fund (PIF). Aramco executed the acquisition through four transactions, Reuters reported, citing sources and market data.
The rest 30% of SABIC’s shares will still be traded on Tadawul. Last month, Aramco reportedly talked with the PIF to restructure the deal as SABIC’s market value fell by over 40% amid the collapse of oil prices. The transactions on Sunday, however, suggested that the agreement had not changed.
Aramco will issue four bonds to finance the transaction, a local media reported. The first instalment of SAR93.3 billion ($24.8 billion) will be paid this week by the oil giant. The acquisition is part of Aramco’s strategy to strengthen its footing in refining and other downstream sectors.
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Published on June 16, 2020 5:33 PM (GMT+8)Last Updated on June 16, 2020 5:33 PM (GMT+8)
