Petrochem board approves capital reduction for polymers subsidiary

National Petrochemical Co.’s (Petrochem) board of directors has approved to reduce the capital of subsidiary Saudi Polymers Company to SAR 1.41 billion from SAR 4.8 billion, the firm said in a bourse statement.

The capital cut is still pending regulatory approvals, it said.

It is difficult to calculate the financial impact for the time being and until the capital reduction is finalized, which is estimated to take place in 2020.

Further developments will be disclosed as they occur, it added.

Petrochem owns a 65 percent stake in Saudi Polymers Co.