Riyadh – Mubasher: National Petrochemical Company (Petrochem) has entered into a non-binding Memorandum of Understanding (MOU) with Saudi Industrial Investment Group (SIIG) for a proposed merger.
The proposed transaction would be conducted through a share exchange offer made by SIIG to acquire all of Petrochem’s issued shares, according to a bourse filing on Tuesday.
SIIG would pay Petrochem’s shareholders through the issuance of new shares in SIIG, which would result in the delisting of Petrochem’s shares.
Petrochem’s shareholders would receive 1.27 shares in SIIG in exchange for each share they own in Petrochem.
SIIG has appointed HSBC Saudi Arabia as its financial advisor, while Petrochem has selected GIB Capital as its financial advisor.
It is noteworthy to mention that on Monday, 27 September, the Saudi Exchange (Tadawul) suspended the trading on Petrochem and SIIG shares for one day upon their requests, as they are expected to disclose material events.
