Sipchem says potential synergies from Sahara merger to reach SAR 225 mln

Saudi International Petrochemical Co. (Sipchem) announced that the potential synergies from merger with Sahara Petrochemical Co. will reach SAR175-225 million per annum (p.a.) on the earnings before interest, tax, depreciation and amortization (EBITDA) level.

Both companies will be able to record these figures by the third year of concluding the deal.

The merger between both entities is expected to take 18-24 months, and the deal is forecast to be sealed before June 30, 2019, pending the regulatory approvals, both companies said in two separate bourse statements.

In December, Sipchem and Sahara entered into a legally binding agreement governing the terms and conditions for implementing a business merger of equals.

Sipchem will be making a recommended offer to acquire all the issued shares in Sahara in exchange for the issuance of new shares in accordance with the applicable rules and regulations of the Capital Market Authority (CMA) and Companies Regulations.