RIYADH, Nov 19 (Reuters) - Saudi Primary Industries Corp (SABIC) 2010.SE mentioned on Thursday it h
RIYADH, Nov 19 (Reuters) – Saudi Primary Industries Corp (SABIC) 2010.SE mentioned on Thursday it has agreed to promote its agri-nutrients enterprise to Saudi Arabia Fertilizers Co (SAFCO), during which it owns a 43% stake.
SAFCO will finance the acquisition by issuing 59.Four million shares, valued at 10 riyals every, to SABIC, elevating the fertilizer group’s general share capital by 14.25% to 4.76 billion riyals ($1.27 bln).
“The deal is a transparent strategic try to create a nationwide champion and a world chief in agrinutrients,” SABIC Chief Government Yousef al-Benyan instructed reporters in a digital press convention.
SABIC had been in search of to consolidate its numerous holdings in corporations specializing in agri-nutrient, or fertilizer, manufacturing, and signed a preliminary cope with SAFCO to divest the ensuing mixed enterprise in Nov. 2018.
After the acquisition the enterprise will take the title SABIC Agri-nutrient Investments.
The deal would enable SABIC to concentrate on its growth in petrochemical merchandise, and SAFCO to develop into extra specialised in fertilisers and phosphate.
SABIC, the world’s fourth-largest chemical compounds firm, which is 70% owned by oil large Saudi Aramco, is seeking to divest companies seen as non-core.
“The brand new firm will develop into the funding arm for SABIC on agribusiness and can create extra synergies on belongings,” Benyan mentioned.
(Reporting by Marwa Rashad; Modifying by Jan Harvey)
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