SIIG, Petrochem shareholders to vote on merger on April 10

Logos of National Petrochemical Co. and Saudi Industrial Investment Group

Shareholders of Saudi Industrial Investment Group (SIIG) and National Petrochemical Co. (Petrochem) are set to vote on the merger deal at the extraordinary general meetings (EGM) slated on April 10.

The proposed merger will be through the issuance of 1.27 shares in SIIG for each existing share in Petrochem, in accordance with the terms and conditions of the implementation agreement related to the deal concluded between the two parties.

In two separate statements issued on Tadawul, SIIG shareholders will vote on the company’s capital hike to acquire the entire 240 million shares in Petrochem that are not owned by SIIG, representing 50% of Petrochem’s capital.

The capital increase will come into effect upon the EGM’s approval of the two firms, in accordance with the provisions of the implementation agreement.

Similarly, Petrochem’ shareholders will discuss the offer submitted by SIIG for the purpose of acquiring all the issued shares in Petrochem that are not owned by SIIG.

In October 2021, SIIG signed a binding merger agreement with Petrochem, as SIIG will acquire all the issued shares in Petrochem that are not owned by SIIG through a securities exchange offer, according to data compiled by Argaam.

SIIG will issue 304.8 million ordinary shares at a nominal value of SAR 10 per share in favour of Petrochem shareholders, by raising SIIG capital.

Accordingly, the Capital Market Authority (CMA) approved SIIG request to increase its capital to SAR 7.55 billion from SAR 4.5 billion by raising the number of its shares from 450 million to 754.8 million shares, representing a hike of 67.73% in SIIG capital.

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