Sipchem And Sahara Sign Binding Merger
Saudi International Petrochemical Company and Sahara announce the signing of binder agreement form for the merger. Both have 50-50 share as per the merger owing to the share swap. Zamil Group is a prominent privately-owned business in Saudi Arabia. It has significant shares in both the firms. The Saudi Arabian government also has shares in Sipchem and Sahara. As the transaction is completes, Sahara will be delisted from the Saudi stock exchange as it will become a wholly owned subsidiary of Sipchem. As per the agreement the combined board will include two members nominated by Zamil group including the present chairman. The present chairman will continue with his services and some members will be nominated by public pension agency. The merger is valued at $2.2 billion and the merger is expected to create a large chemicals company.
About Sipchem - It is a joint stock company in Saudi. It is owned by Gulf Cooperation Countries and private sectors investors of Saudi Arabia. The firm serves customers in the polymer, construction, coatings, solvents, automotive, electronics, and pharmaceutical industries. It gives out 1% of its total net profit to social responsibility programs every year.
About Sahara - The firm is a conglomerate which is headquartered in Lucknow India. Its business sectors include: education, hospitality, health care, information technology, infrastructure & housing, media & entertainment and finance. The firm operates in around 38 countries. The firm is a member of the World Economic Forum community named Partnering Against Corruption Initiative (PACI). The firm has also been a supporter of sports and have sponsored various teams like Indian national hockey team and Indian national cricket team.
— Vasundhra Singh,
Assistant Research Executive,