Alujain finalizes sale of 35% stake in NATPET in SAR 1.86B deal

One of Alujain's plants

Alujain Corp. announced today, May 30, completing the transaction of selling a 35% equity stake in its subsidiary National Petrochemical Industrial Company (NAPTET) to Basell International Holdings B.V., with SAR 1.86 billion having been deposited, the company said in a statement to Tadawul.

The company also said that all conditions agreed upon in the share purchase agreement have been completed, including:

For more news and details on M&As

1. Completing the restructuring of Alujain subsidiaries:

- Transfer of NATPET’s 100% ownership in the share capital of Infrastructure Reinforcement Industrial Company (IRIC), its subsidiary to Alujain.

- Transfer of NATPET’s 50% ownership in the share capital of Natpet Schulman Specialty Plastic Compounding L.L.C (Natpet Schulman), its joint venture (JV) to Alujain.

2. Obtaining the necessary regulatory approvals inside and outside the Kingdom from the relevant governmental authorities according to the terms of the agreement and the applicable laws and regulations.

Alujain noted that its ownership in NATPET decreased from 100% to 65% upon completion of this transaction.

Alujain also said that the proceeds of the sale will be used to pay off all owed debts amounting to SAR 1.23 billion, adding that the balance will be invested in investment opportunities that are being studied with the aim of diversifying the company's sources of income and enhancing its financial stability.

Last January, Alujain signed an agreement to sell a 35% stake in NATPET to Basell International Holdings B.V., a subsidiary of New York Stock Exchange-listed LyondellBasell Industries N.V., for nearly SAR 1.87 billion ($500 million), data available to Argaam showed.

Alujain stock was halted today at the close of the session. It will resume trading on Sunday, June 2, 2024.