NATPET still owns 100% of Menna, 26% of 3 other companies: Alujain

Alujain Holding said in a bourse statement that its subsidiary, National Petrochemical Industrial Co. (NATPET), has set up 4 limited liability companies (LLCs); Fawasil Advanced Petrochemical Co., Afaaq Professional Chemicals Co., Menna Co. and Abraaj Al Taj for Plastic Industries Co.

On Thursday, March 5, the ownership structure showed that Menna owns a 7.67% stake of Alujain Holding. The historical data of the major shareholders indicated that NATPET’s ownership dropped from 10.71% to 5.65% on March 2, then data on this ownership was omitted on March 3.

Alujain then added that NATPET owned 100% of these four companies, whereas NATPET claimed it had no ownerships in these companies, adding that it also owned no stakes in Alujain Holding either directly or indirectly.

“As per the Ministry of Commerce’s data, NATPET still owns 100% of Menna and 26% of all the other 3 companies,” Alujain added.

The value of Alujain’s share in the sold assets exceeds 10% of its net assets. As Alujain owns a 57.4% in NATPET and that NATPET’s practices weigh on Alujain’s shareholders, Alujain requested NATPET to submit a justification for these practices in addition to a detailed statement on the relevant financial impact.

NATPET is also required to disclose the sources of financing Alujain shares purchase and the purpose and financial impact of this purchase, as well as all information related to NATPET’s stake change in the 4 companies.

In addition, the subsidiary of Alujain should disclose the financial impact of selling stakes in the 4 companies, the use of proceeds from selling Alujain stake and the stakes in those 4 companies. Alujain also requested NATPET to prepare a list of all subsidiaries and subsidiaries of the 4 companies, capital, activity and purpose.

These subsidiaries’ buying shares in Alujain is considered a violation of Article 184 of the Corporate Law, according to Alujain.

Alujain asserted that this material info will likely impact the stock’s price.

On Monday, NATPET said that its subsidiaries are Natpet Schulman Specialty Plastic Compounds (NSSPC) and another one specialized in manufacturing.

NATPET indicated that its subsidiaries own no shares in Alujain Holding and that the trading suspension decision for the second time was ‘baseless.’