The merger of the Saudi Industrial Investment Group with Petrochem through a joint memorandum of understanding

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The Saudi Industrial Investment Group and the National Petrochemical Company concluded an initial memorandum of understanding to start the merger of the two companies through the exchange of shares. GIB Capital as a financial advisor, in order to pursue the implementation of the potential transaction, and we will clarify with you all the details in this regard through the following article.

Saudi Industrial Investment Group

The Saudi Stock Exchange, Tadawul, expressed the fact of the merger between the two companies, saying that it had been agreed in principle on the structure of the implementation of the deal to be held through the exchange of shares, the offer made by the Saudi group to Petrochem, with the aim of fully acquiring all the private shares of Petrochem and other Owned by the Saudi Group, and thus other new Petrochem shares are issued, and thus Petrochem’s shares disappear from the industrial market, and become completely owned by the Saudi Industrial Investment Group.

exchange rate

  • The statement of the Saudi Stock Exchange indicated that the price offered for the exchange of shares in that deal is that Petrochem will get 1.27 shares from the Saudi group in return for handing over all the company’s shares to the other party of the agreement in the event of the transaction being completed, and thus Petrochem becomes just a partner in the Saudi group.
  • However, this exchange agreement was reached after the two companies conducted the necessary professional studies and detailed financial evaluation for each party.
  • It is worth noting that the issuance of a memorandum of understanding makes the agreement non-binding and certain, but the deal is subject to the necessary implementation. That deal is done.
  • Petrochem clarified earlier that its board of directors agreed in principle to start discussions and trading discussions with the Saudi group, after studying the economic feasibility of merging the business of the two companies.

Thus, we got acquainted with the most important details related to the exchange of Petrochem’s shares with the Saudi Industrial Investment Group, and the merger of the two companies to become one company represented by the Saudi Group, but the agreement is still not binding.





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