Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABIC's value following a slump in oil prices in coronavirus pandemic, two sources told Reuters.
DUBAI - Saudi Aramco is looking to restructure its deal to acquire a controlling stake in petrochemicals maker SABIC after a more than 40% drop in SABIC’s value following a slump in oil prices in coronavirus pandemic, two sources told Reuters.
The transaction was priced at 123.39 riyal per SABIC share, when the deal was announced in March 2019, but its shares are currently trading at around 70 riyals, as an oil price crash and the coronavirus pandemic pushed SABIC into a second straight quarterly loss in the first quarter.. Aramco’s chairman and head of the PIF, Yasir al-Rumayyan, is leading the talks for Aramco and purchase price will be reviewed, according to one of the sources with direct knowledge of the matter.
The loan was aimed at providing PIF with short-term funding for new investments and would have been repaid after the sale of SABIC is completed, the PIF said last year.Aramco and the PIF did not immediately respond to a Reuters request for comment.
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