Saudi petchems colossus Sabic has agreed to sell its agrinutrients business unit to Saudi fertilizers manufacturer Safco, in which it holds a 42.99% stake. Sabic chief executive Yousef al-Benyan announced the deal on a 19 November virtual press conference, according to Reuters. Safco will reportedly finance the acquisition by issuing 59.4 million shares at SR10 ($2.67) each, raising its total share capital by 14.25% to SR4.76bn ($1.27bn). Mr Benyan said the deal will “create a national champion and a global leader in agrinutrients.” Sabic agreed with Safco in December on a deal for its agrinutrients unit, which has 50% stakes in Saudi fertilizer firms Ibn Al Baytar and Al Bayroni and one-third of Bahrain’s Gulf Petrochemical Industries (GPIC) with partners PIC of Kuwait and Noga of Bahrain (MEES, 10 January).
Sabic has stakes in three Tadawul-traded petchems firms: Safco and polyolefins producers Yansab (51.95%) and Saudi Kayan (35%). Safco was the most profitable in 3Q20, whilst Saudi Kayan continued a loss-making run after scheduled maintenance closed most units in the first quarter (MEES, 23 October). (CONTINUED - 167 WORDS)