Saudi Basic Industries Corp. — M&A Activity 2019

Mar 13, 2019

Saudi Basic Industries Corporation (SABIC) announces its intention to merge Saudi Petrochemical Company (SADAF) in Arabian Petrochemical Company (PETROKEMYA)

2010 · 13/03/2019 08:36:59 · Announcement #53776 · View on Saudi Exchange

Saudi Basic Industries Corporation (SABIC) announces its intention to merge Saudi Petrochemical Company (SADAF) in Arabian Petrochemical Company (PETROKEMYA)

Element List	Explanation
Announcement Detail	Saudi Basic Industries Corporation (SABIC) announces its intention to merge its wholly-owned affiliate Saudi Petrochemical Company (SADAF) in its wholly-owned affiliate Arabian Petrochemical Company (PETROKEMYA).

All assets, rights, liabilities and obligations of (SADAF) as the merged company will be transferred to (PETROKEMYA) as the merging company according to the valuation of the financial status of (SADAF) as set out in its most recent financial statements.

Subject to receipt of relevant regulatory approvals, (PETROKEMYA) will continue to exist and (SADAF) will cease to exist as a legal entity as a result of merger.

The merger is part of SABIC’s strategic transformation plan to increase efficiency and competiveness of its global operations. SABIC’s aim with this merger is to create a more efficient entity which will increase the optimisation of assets and unlock value from the synergies between the two companies’ product streams. This will also create more effective and streamlined operations, maintenance and project execution.

It is expected that the merger will be completed during the second half of 2019 and it is not expected to have any material impact on SABIC’s financial position.

Saudi Petrochemical Company (SADAF ) is a limited- liability company, registered on 02/01/1401, with commercial registration number 2055000564, and having its main office address at P.O Box 10025, Jubail Industrial City 31961, Kingdom of Saudi Arabia. SADAF products include [Ethylene, Styrene, Caustic Soda, MTBE and Ethanol]. The SADAF complex includes six petrochemical plants with a total production capacity of more than 4 million metric tons per year and a cogeneration power station.

Arabian Petrochemical Company (PETROKEMYA) is a limited liability company, registered on 28/11/1401, with commercial Registration number 2055000857, and having its main office address at P.O Box 10002, Jubail Industrial City 31961, Kingdom of Saudi Arabia. PETROKEMYA products include [Ethylene, Propylene, Butene, Benzene, Butadiene, Polystyrene, Polyethylene, Poly Venyl Chloride and Acrylonitrile Butadiene Styrene (ABS)].

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.