Forbes: Bin Salman tightens his grip on Aramco

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Reuters

Saudi Crown Prince Mohammed bin Salman

Forbes magazine said that Saudi Crown Prince Mohammed bin Salman has tightened his grip on the “cash machine”, Saudi Aramco, which is the most profitable company in the world.

The magazine pointed out in a report that what bin Salman revealed, that there are talks to sell a share of the company by 1 percent to a global energy company, for $ 18 billion, and if it occurs, it will add to what the Saudi prince collected from selling “pieces of the crown jewel in the Saudi economy “.

The report stated that “In December 2019, Aramco raised $ 29 billion in the initial public offering, at 1.75% of the company, and in recent weeks, the“ consortium ”group bought 49 percent of Aramco’s oil pipelines for $ 12.4 billion. There is talk of a similar sale of gas pipelines soon. ”

The report indicated that bin Salman had originally proposed a plan to sell 5 percent of Aramco and raised $ 100 billion with an implicit market cap of $ 2 trillion, indicating that bin Salman is collecting all this money as part of his plan to stimulate $ 1.3 trillion in investments. Public and private sectors to diversify the Kingdom’s economy.

Last year, Aramco delivered another $ 69 billion to the Saudi Public Investment Fund in exchange for a 70% stake in the chemical giant Saudi Basic Industries Corporation.

The report said that there is no doubt that Mohammed bin Salman is not seeking to pressure Aramco’s capital growth, but he is seeking to reap what has already been harvested, believing that Aramco shareholders can be reassured that the iron fist protects their investments.

Source: “Forbes”





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