Alujain to purchase 16% of NATPET for SAR 814.6 mln

Logo of Alujain Holding Corp. and NATPET

Alujain Holding Corp. signed an agreement with a group of shareholders at its 57.4%-owned subsidiary, National Petrochemical Industrial Company (NATPET), to buy 17.15 million shares, or 16% of NATPET’s total shares, for SAR 814.6 million.

Upon finalizing the deal, Alujain will increase its ownership in NATPET to 73.43% from the current 57.40%.

The transaction will be financed through a Sharia-compliant Murabaha loan facility with Alinma Bank. It aims to boost the company's strategic plans by increasing investments.

NATPET is a closed joint stock company with its headquarters in Jeddah. It produces propylene/polypropylene and its derivatives, with a production capacity of 400,000 tons per year of polypropylene. The authorized and paid-up capital comprised 107 million shares of SAR 10 per share.

The relevant financial impact will appear on Q3 2021 financials.

The deal included no related parties, the statement added.

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