MOSCOW (MRC) -- Saudi International Petrochemical Co (Sipchem) has agreed to pay USD100.2 million to raise its stake in two local subsidiaries, said Reuters.
The firm will buy stakes owned by Kuwait's Ikarus Petroleum Industries Co in International Acetyl Company and International Vinyl Acetate Company.
Both companies operate plants for production of acetic acid and acetic anhydride and vinyl acetate monomer, located in Saudi Arabia's Jubail Industrial City, Sipchem said in a statement to Riyadh's bourse.
Sipchem, which already owns 76% of each of the two companies, said after the deal its equity in each would rise to 87%.
The acquisition, which would be funded through Sipchem's own resources and Islamic financing facilities, was targeted to be completed during the third quarter of 2015, it said.
As MRC informed earlier, Saudi International Petrochemical Co. and South Korea’s Hanwha Chemical Corp. in January 2015 opened a USD40 million EVA thin-film solar panel manufacturing plant in Saudi Arabia.
Established in 1999, Saudi International Petrochemical Company (Sipchem) manufactures and markets methanol, butanediol, tetrahydrofuran, acetic acid, acetic anhydride, vinyl acetate monomer. Besides, it has launched several down-stream projects to manufacture ethylene vinyl acetate, low density polyethylene, ethyl acetate, butyl acetate, cross linkable polyethylene, and semi conductive compound that are scheduled to start in 2013.
MRC