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    2010   SA0007879121

SAUDI BASIC INDUSTRIES CORPORATION

(2010)
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JPMorgan, Morgan Stanley picked to advise on Aramco's SABIC deal: sources

07/23/2018 | 01:08pm EDT
FILE PHOTO: General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia

DUBAI (Reuters) - JPMorgan and Morgan Stanley have been picked to advise on Saudi Aramco's plan to buy a controlling stake in petrochemical maker SABIC, several sources familiar with the matter said.

Aramco aims to buy such a stake, possibly taking the entire 70 percent holding owned by Saudi Arabia's sovereign wealth fund, two of the sources familiar with the matter told Reuters earlier on Monday.

Late last week, Aramco confirmed a Reuters report that it was working on the possible purchase of a "strategic stake" in Saudi Basic Industries Corp (SABIC) from the Public Investment Fund (PIF), Saudi Arabia's top sovereign wealth fund.

Aramco wants to develop its downstream business as the government prepares to sell up to 5 percent of the company, which is the world’s largest oil producer. Boosting its petrochemicals portfolio further could help to attract investors for the initial public offering.

JPMorgan and Morgan Stanley had already been among the advisers assisting Aramco on its IPO.

Aramco's initial thinking is to buy the full stake owned by the PIF, but if that fails to materialise Aramco could end up with a stake in SABIC of more than 50 percent, making it a majority owner, two of the sources said.

No final decision has been made on the size of the stake as discussions are at a very early stage, they added.

Aramco, JPMorgan and Morgan Stanley declined to comment.

The PIF did not respond to a request for comment on the size of the stake sale.

Riyadh-listed SABIC, the world's fourth-biggest petrochemicals company, has a market capitalisation of 385.2 billion Saudi riyals ($103 billion).

The potential acquisition would affect the time frame of Aramco's planned IPO set for later this year, the state oil giant's chief executive, Amin Nasser, said in a TV interview on Friday.

Aramco plans to boost investments in refining and petrochemicals to secure new markets and sees growth in chemicals as central to its downstream strategy to cut the risk of an oil demand slowdown. [L8N1TE423]

Aramco plans to raise its refining capacity to between 8 million and 10 million barrels per day, from around 5 million bpd now, and double its petrochemicals production by 2030.

Aramco pumps around 10 million bpd of crude oil.

(Editing by Dale Hudson, Louise Heavens and Jane Merriman)

By Hadeel Al Sayegh, Rania El Gamal and Tom Arnold


© Reuters 2018
Stocks mentioned in the article
ChangeLast1st jan.
JPMORGAN CHASE & CO. -0.19% 150.64 Delayed Quote.18.78%
MORGAN STANLEY -1.07% 94.55 Delayed Quote.37.97%
SAUDI ARABIAN OIL COMPANY -0.29% 34.9 End-of-day quote.-0.29%
SAUDI BASIC INDUSTRIES CORPORATION 0.68% 119 End-of-day quote.17.36%
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07/12Saudi Aramco drops Morgan Stanley on gas pipelines deal -sources
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07/01SAUDI BASIC INDUSTRIES : SABIC board of director recommends distributting SR 5,2..
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07/01KHALID AL-DABBAGH : Aramco CFO Khalid al-Dabbagh steps down
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06/30MARKET CHATTER : Aramco CFO to Step Down; Successor Named
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06/22SAUDI BASIC INDUSTRIES : SABIC Wins 2021 Responsible Care® Chairman's Award As R..
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More news
Financials
Sales 2021 155 B 41 294 M 41 294 M
Net income 2021 17 675 M 4 712 M 4 712 M
Net Debt 2021 2 116 M 564 M 564 M
P/E ratio 2021 19,4x
Yield 2021 3,06%
Capitalization 357 B 95 172 M 95 180 M
EV / Sales 2021 2,32x
EV / Sales 2022 2,29x
Nbr of Employees 35 000
Free-Float 30,0%
Chart SAUDI BASIC INDUSTRIES CORPORATION
Duration : Period :
Saudi Basic Industries Corporation Technical Analysis Chart | 2010 | SA0007879121 | MarketScreener
Technical analysis trends SAUDI BASIC INDUSTRIES CORPORATION
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus UNDERPERFORM
Number of Analysts 12
Last Close Price 119,00 SAR
Average target price 112,77 SAR
Spread / Average Target -5,24%
EPS Revisions
Managers and Directors
Yousef bin Abdullah Al-Benyan Vice Chairman & Chief Executive Officer
Timothy D. Leveille Executive Vice President-Corporate Finance
Khalid Hashim Al-Dabbagh Chairman
Bob Maughon Executive Vice President-Technology & Innovation
Khaled Hamza Nahas Independent Director
Sector and Competitors