‎“Alujain” signs a deal to sell 35% of “NATPET” to “Basel ‎International” for 1.87 billion riyals

Alujain Company announced that, under the generous patronage of Prince Abdulaziz bin Salman Al Saud, Minister of Energy, an agreement (deal) was signed to sell an ownership stake representing (35%) of the capital of the subsidiary, the National Petrochemical Industries Company (NAPTET) to Basel International. Holding Company (a subsidiary of Lindell Basel Industries Holding Company, listed on the New York Stock Exchange NYSE “under the symbol LYB”), with a value of 1.87 billion riyals (approximately $500 million).

The company said in a statement today on “Tadawul” that this deal is considered part of the strategic partnership between Alujain and Basel International Holding, and it is expected that this partnership will contribute to achieving the goals of the energy sector within the Kingdom’s Vision 2030, by maximizing the added value to the national economy achieved by Sector

The agreement includes preconditions and guarantees related to amendments to the structure of Natpet and the new project company to suit the partnership agreement, and obtaining the necessary approvals from the relevant authorities according to the terms of the agreement.

Note that Alujain’s ownership in NATPET at the date of signing this agreement amounts to 98.7% of the total shares of NATPET.

Natpet Company (a closed Saudi joint stock company), whose main center and propylene and polypropylene complex are located in the industrial city of Yanbu for the purpose of producing polypropylene and its derivatives, and its production capacity reaches 400 thousand tons of polypropylene and its derivatives. Its authorized and paid-up capital consists of 107 million shares, valued at 10 riyals per share.

The book value of NATPET shareholders’ rights as of November 30, 2023 is 2.53 billion riyals.

Financial statements for the last three years of the asset subject to the transaction:

NAPTET revenues:

In 2020, the amount is 1,174 million Saudi riyals

In 2021, the amount is 2,008 million Saudi riyals

In 2022, the amount is 1,889 million Saudi riyals

Natpet Company’s net profits:

In 2020, the amount is 412 million riyals

In 2021, the amount is 519 million riyals

In 2022, the amount is 261 million riyals

Reasons for the deal:

Achieving the strategic goals of the two partners, and enabling Al-Lujain Company to optimally deal with its current and future financial obligations.

The company said that once the deal is completed, Alujain will receive 1.87 billion riyals (approximately $500 million) in cash. Indicating that the deal is expected to be completed once the terms of the agreement are met and the relevant approvals are obtained.

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