SABIC shareholders held an extraordinary meeting on June 10 when they approved some changes in the company's bylaws that paved the way for Saudi Aramco's acquisition of the company's 70% stake. Aramco previously said that it aimed at finalizing the purchase by the end of June. The company has communicated with the Public Investment Fund (PIF), the seller of the holding, to lower the $69.1 billion price due to the collapse in oil prices and the decline in SABIC's shares.
Among the changes is the article stating that PIF must maintain ownership of at least 25% in SABIC. PIF can sell the retained shares by virtue of cabinet decree. SABIC's 30% shares will continue to be traded in Tadawul stock exchange.
After the acquisition, Saudi Aramco will be one of the world's top four producers in the ethylene value chain, thanks to SABIC's vast portfolio of polyethylene, polypropylene, and ethylene glycol. The acquisition will also extend Aramco's market reach to 50 countries.
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Published on June 12, 2020 4:37 PM (GMT+8)Last Updated on June 12, 2020 4:37 PM (GMT+8)
