2023-09-03 21:34:12
Dubai (Archyde.com)
The Saudi Basic Industries Corporation (SABIC) said yesterday, in a disclosure to the Stock Exchange, that it had agreed to sell its entire stake in the Saudi Iron and Steel Company (Hadeed) to the Public Investment Fund, at a total value of 12.5 billion riyals ($3.33 billion).
The company added in the disclosure that it expects to complete the deal before the end of the first quarter of 2024, and “the proceeds will be used to enhance the company’s growth in the field of chemicals.”
She indicated that the final sale price will not be determined until the date of completion of the deal.
And SABIC, one of the largest petrochemical companies in the world, announced a sharp decline in its net profit in the second quarter, which it attributed to the decline in average sales prices and weak demand.
In the disclosure, it said that the sale of (Hadeed), wholly owned by it, will enable it to “focus on and improve its core business.”
And she expected that a fair assessment of Hadid’s net assets might result in “non-cash losses in the amount of between two billion Saudi riyals and 2.5 billion Saudi riyals, provided that the financial impact appears in the company’s results for the third quarter of 2023.”
Hadid plays a major role in the construction of huge infrastructure projects in the kingdom that are central to the economic transformation plan known as Vision 2030 led by the Public Investment Fund, the country’s sovereign wealth fund.
In a separate announcement on Sunday, the Public Investment Fund said it had sold its 10.9 percent stake in the National Gas and Industrialization Company (Gazco) through a private deal for 491.2 million riyals ($130.96 million).
1693778362
#SABIC #sells #Hadeed #Saudi #Investment #Fund