The Saudi Industrial Investment Group announced the signing of a non-binding memorandum of understanding regarding a securities exchange deal with the National Petrochemical Company, Petrochem, to complete the potential deal to merge the two companies' businesses. /p>
The Saudi group said in a statement to the Saudi market (Tadawul), today, Tuesday, that the board of directors agreed to study the economic feasibility regarding the merger of the two companies' businesses, the potential deal, and the determination of the swap factor. Equity and potential transaction execution structure.
The Saudi Group has appointed HSBC Saudi Arabia as the financial advisor, and Petrochem has appointed GIB Capital as the financial advisor, in connection with the potential transaction.
The statement clarified that the Saudi Group and Petrochem had agreed in a non-binding manner under the Memorandum of Understanding that the structure of the implementation of the potential deal would be through a share exchange offer submitted by the Saudi Group ( As the bidder) to Petrochem (as the offeree company) for the purpose of acquiring all the issued shares in Petrochem that are not owned by the Saudi Group, in return for issuing new shares in the Saudi Group to Petrochem’s shareholders in accordance with the provisions of Article (26) of the Merger and Acquisition Regulations, which will result in delisting Petrochem shares to become a wholly owned company of the Saudi group.
The share swap factor for the potential transaction will be (1.27), according to which Petrochem's shareholders - if the transaction is completed - will get (1.27) shares in the group Saudi Arabia for every share they own in Petrochem (Share Swap Coefficient).
The Saudi group said that the stock exchange coefficient was reached after the two companies conducted the necessary professional care studies and the financial evaluation of each party.
The statement stated that the two parties are seeking to fulfill all requirements related to the potential deal before the end of the current calendar year, including signing the final binding agreement, obtaining regulatory approvals, and then offering the deal. potential shareholders of the Saudi Group and Petrochem in accordance with the relevant laws and regulations.
