Advanced Petrochemical plans to share technology with Tasnee

Saudi Arabia’s Advanced Petrochemical chairman Mr. Khalifa Al-Melhem told Al Arabiya that his company acquired 6% stake in National Industrialization Co. (Advanced Petrochemical)

Saudi Arabia’s Advanced Petrochemical chairman Mr. Khalifa Al-Melhem told Al Arabiya that his company acquired 6% stake in National Industrialization Co. (Tasnee), aiming at establishing cooperation in using the technology of propylene and polypropylene production.

Advanced disclosed the deal to the Saudi Stock Market (Tadawul) on Monday, revealing that the total cost of Tasnee’s shares purchased is approximately $123.4 million.

“We have two major drivers for investing in Tasnee; firstly, the cost of the acquisition is lower than building a new plant, and secondly, we are looking forward to cooperate with Tasnee as we use the same technology in producing propylene and polypropylene”, Al-Melhem said in an interview with Al Arabiya TV.

Al-Melhem assured that the acquired stake in Tasnee is a “strategic investment,” but refused to comment when asked whether his company will increase its stake further. “Our goal is to secure the financial benefit for the shareholders, as well as cutting cost,” he added.

Mr. Khalifa Al-Melhem

Mr. Khalifa Al-Melhem

Advanced indicated that any additional share purchases will be subject to approval from its investment committee. Last July, Advanced disclosed its plan to invest in a publicly listed company without disclosing its identity.

Al-Melhem revealed that the petrochemicals market is witnessing some improvement. He added that US President-elect Donald Trump may give a boost for the growth, which may reflect positively on GCC economies.

*This article can be viewed in Arabic on AlArabiya.net

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Last Update: Wednesday, 20 May 2020 KSA 09:49 - GMT 06:49
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