Alujain says NATPET did not disclose ‘material’ information

Alujain Holding, in line with the share listing regulations and other requirements of the Capital Market Authority (CMA), requested its subsidiary, National Petrochemical Industrial Co. (NATPET), to provide data about the developments pertaining to the following:

- The developments pertaining to the potential merger as well as other concluded agreements;

- Other data related to the company’s productivity after resuming operations in its facilities, insurance compensations and whether the final settlement agreement was concluded.

Alujain’s bourse statement followed NATPET’s statement published on March 4, 2020, regarding the following;

- When asked about the company’s acquisition of 10.7% of Alujain, NATPET chief executive officer (CEO), Khalid Zazoog, said the share purchase was aimed at integrating board decisions after Alujain’s board of directors terminated its term. In addition, the share purchase will help paving the way for the potential merger between both companies.

- A board’s decision was issued on conducting studies, and was signed by a board member who introduced himself as a General Organization for Social Insurance (GOSI) representative. The board decision can be checked by GOSI’s board. In addition, GOSI inked some agreements after studies were conducted related to the potential merger.

Alujain said in its statement that it issued another disclosure on Thursday March 5 during the trading session and failed to get the required information.

“This material information will likely affect the share price and NATPET did not provide it,” the company said in its statement.

NATPET sent a letter on March 5, 2020 after the close of the trading session. However, it did not provide the required information.

Alujain confirmed it requested NATPET to submit all documents and agreements pertaining to the potential merger, which the CEO spoke of on March 4. Alujain said it is waiting these documents and will announce the related updates.

NATPET’s CEO requested GOSI to form an investigation committee, or let NATPET submit the necessary related documents, Argaam reported previously.

On March 4, NATPET expressed surprise at GOSI statement which included incorrect claims, confirming that all data mentioned in the company statement dated Feb. 27 was correct.