SAUDI ARABIA

Aramco discusses with PIF to acquire stake in SABIC

July 19, 2018

DHAHRAN – Saudi Aramco is in “very early-stage discussions” with Saudi Arabia’s Public Investment Fund (PIF) to acquire a stake in Saudi petrochemical maker SABIC (Saudi Basic Industries Corporation), Saudi Press Agency (SPA) quoted the company as saying Thursday.

The statement follows media reports that Saudi Aramco last month had already invited banks to pitch for an advisory role in the acquisition, which could help increase the company’s market valuation ahead of an IPO.

“Consistent with the company’s strategy of rebalancing its portfolio by moving further into downstream and the petrochemical sector in particular, the company has been evaluating a number of acquisition opportunities, both local and global,” the statement noted.

The negotiations with PIF regarding SABIC, the statement added, are “preliminary.”

“There is no certainty that any such transaction will take place,” it noted. “Saudi Aramco has no plans to acquire any publicly held shares of SABIC.”

Saudi Aramco indicated that it would announce the latest developments in this regard in accordance with applicable regulations and through its official channels.

The PIF too referred to recent media speculation regarding Aramco’s interest to acquire an ownership position in SABIC.

PIF reiterated that it is in very early-stage discussions with Aramco regarding a potential sale to Aramco of a strategic interest in SABIC, but the discussions remain in a very early-stage and there is a possibility that no agreement will be reached in relation to this potential transaction.

PIF will announce any material developments in this regard according to applicable regulatory. — SPA


July 19, 2018
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