Saudi Arabia Fertilizers Co. (SAFCO) and Saudi Basic Industries Corp. (SABIC) have hired investment banks to advise on the potential stake sale in National Chemical Fertilizer Co. (Ibn Al-Baytar), the companies said in separate statements on Monday.
SAFCO has mandated Samba Capital to conduct the feasibility study required to buy SABIC’s full stake in the chemical fertilizer producer. SAFCO, one of the world’s largest producers of ammonia and urea, said in March that it was looking to acquire SABIC's 50 percent stake in Ibn Al-Baytar.
SABIC also appointed HSBC’s Saudi Arabian unit as financial adviser to study the feasibility of the potential sale to SAFCO.
The giant petrochemical producer added that it expects the study to be completed by Q1-2017.
The current feasibility studies would have no financial impact on either company, the statements added.
Jubail-based Ibn Al-Baytar, which was launched in 1985 with SAR 494.7 million in capital, is a 50-50 joint venture between SAFCO and SABIC. SABIC, meanwhile, owns 42.99 percent of SAFCO.
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