Saudi Basic Industries Corporation (SABIC) has signed an agreement with the Japan-United Kingdom Methanol Company, which includes the following:
SABIC buys 50% of the share of the Saudi-US Methanol Company 25% of all the shares of Saudi Methanol Company “Al-Razi” – for 150 million dollars (about 562.5 million riyals), thus SABIC’s share is 75% Al-Razi “and 25% of Japan-Saudi Methanol Company.
SABIC said in a statement on Tadawul that the previous partnership agreement between SABIC and Japan-United Methanol Company gives SABIC the right to acquire the 50% stake in Al Razi at the end of the partnership contract. .
Second: Extension of the partnership between SABIC and the Japan-United Methanol Company of Saudi Methanol Company “Al-Razi” – to become the last owner of a 25% stake in Al-Razi for 20 years. So that Japan-United Methanol Company will pay SAR 1.35 billion (about SR 5063 million) to SABIC for the extension of the partnership.
SABIC will use all or part of the above amount to maintain and improve the operational efficiency of existing Razi plants or to establish a new plant.
Fourth: SABIC shall be the owner of the new technology partnership under development for the production of methanol.
Fifth: Under the terms and conditions of the agreement, the Japanese Saudi United Methanol Company is entitled before March 31, 2019 to sell its remaining stake in Al Razi, 25% of Sabic, worth US $ 150 million. In this case, the terms of the Agreement referred to above in Paragraphs II, III and IV shall not be exercised and Al Razi shall become wholly owned by SABIC.
SABIC said it expects the financial impact to start with the completion of the deal in 2019, based on regulatory approvals, and SABIC will announce it at the time.
The Saudi Methanol Company is engaged in the development, construction, operation and operation of a methanol complex. SABIC currently owns 50% of the company and Saudi United Saudi Methanol Company 50%.
It is worth mentioning that the activities of the Japanese American Methanol Company are concentrated in the investment and development of methanol plants.