CMA approves SIIG's capital hike request to acquire Petrochem shares

Logos of Saudi Industrial Investment Group and National Petrochemical Co.

The Capital Market Authority's (CMA) board approed today the request received from Saudi Industrial Investment Group (SIIG) to increase its capital from SAR 4,500 million to SAR 7,548 million by issuing 304.8 ordinary shares to acquire all shares issued in National Petrochemical Co. which are not owned by SIIG through securities exchange.

SIIG's capital increase shareholder circular will be published within sufficient time before the extraordinary general assembly meeting. The circular must include all relevant information that the shareholders need to know before making an informed decision when voting on the capital increase for the purpose described, including the increase in capital and risk factors.

The CMA resolution included the approval of the proposed offer timetable, as well as the approval of the publication of SIIG's offer document to Petrochem shareholders through securities exchange.

SIIG's offer document will be published to Petrochem shareholders to acquire all their shares in the company within sufficient time before Petrochem's extraordinary general assembly meeting.

If SIIG's shareholders approved the capital increase, and Petrochem shareholders accept the offer in their respective EGMs, the new shares will be issued to Petrochem shareholders who are registered with the Securities Depository Center Co. Petrochem shares will be delisted from the Saudi Exchange after the merger decision becomes effective.

In October, SIIG signed a binding merger agreement with Petrochem, under which SIIG will make an offer to acquire all the issued shares in Petrochem that are not owned by the group in return for issuing new shares to Petrochem’s shareholders in SIIG, Argaam earlier reported.

The two companies expected the merger to be completed in the first quarter of 2022.

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