Alujain to acquire GOSI’s entire ownership in NATPET

Logo of Alujain Holding Corp.

Alujain Corp. signed a share swap agreement with the General Organization for Social Insurance (GOSI) to acquire the latter’s entire ownership of 12.19%, or 13.04 million shares, in the National Petrochemical Industrial Co. (NATPET), according to a statement to Tadawul. 

GOSI will receive 9.06 million shares in Alujain and a cash consideration of SAR 81.21 million in return for 2.02 million of GOSI shares in NATPET, the statement added. 

Upon finalizing the deal, Alujain’s ownership in NATPET will increase from 76.40% to 88.59%. 

Prior to the deal completion, NATPET will distribute 19.99 million of Alujain shares as an in-kind distribution, of which Alujain will have 15.28 million. The in-kind consideration -equals to 9.06 million shares in Alujain- will be settled through its share of these distributions.   

The agreement includes regular guarantees provided by both Alujain and GOSI, in addition to other terms including the approval of NATPET’s general meeting on distributing an in-kind dividend, representing all shares owned by NATPET and its subsidiaries in Alujain amounting to 19.99 million, in addition to obtaining the necessary approvals.  

The deal, which will be financed through a share swap and a loan facility to be secured from Alinma Bank, aims to support Alujain’s strategic plans by increasing investments.  

NATPET is a Saudi closed joint stock company with its head office and propylene/polypropylene complex based in Yanbu Industrial City.  It has a production capacity of 400,000 tons per year of polypropylene. The company’s authorized and paid-up capital is divided into 107 million shares, at SAR 10 per share. 

The relevant financial impact will likely appear on H2 2023 financial statements, and the deal included no related parties, Alujain said. 

Alujain, owning more than 10% in NATPET, invited shareholders for a general meeting to vote on the distribution of Alujain shares owned by NATPET and its subsidiaries.

Any relevant updates will be announced in due course, the statement added.

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