Sipchem acquires stakes from Kuwait’s Ikarus

Saudi International Petrochemical Co. (Sipchem), which produces methanol and derivatives, has acquired stakes in two of its affiliates which were owned by Kuwait’s Ikarus Petroleum Industries Co., the petrochemical producer said in a statement to Tadawul.

Sipchem has paid the full amount (SAR 375 million) for the stakes, and the financial impact of the transaction will be reflected on Q1-2016 results.

The Saudi-listed company’s now hold an 87 percent position in each of the affiliates.

“The transaction is expected to lead to an increase in Sipchem profits to the benefit of its shareholders for the long term,” the statement added.

Prior to the purchase, Ikarus held an 11 percent stake in the International Acetyl Co., a producer of acetic anhydride and acetic acid. It had also owned 11 percent of International Vinyl Acetate Co., which produces 330,000 tons of vinyl acetate monomer per year.

Last June, Ikarus and Sipchem signed an agreement which set the terms for the deal.