Sabic mulls raising capital to $8 billion
Posted: 31 December 2007
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The Saudi Basic Industries Corporation (Sabic), one of the world’s largest petrochemical producers, is considering increasing its capital from SR25 billion ($6.7 billion) to SR30 billion ($8 billion) by granting one bonus share for every five shares.
The board of directors, which met just before the end of the year, said the proposal would be discussed at extraordinary general assembly in March.
The total number of shares, once approved, would increase by 20% to 3 billion from 2.5 billion, said Sabic Chairman Prince Saud bin Abdullah bin Thenayan Al-Saud, who presided over the meeting.
He said the board also decided to recommend to the general assembly the distribution of dividends at SR2 per share for the second half of 2007, raising the total of distributed dividends for the year to SR7.5 billion against SR10 billion in 2006 when it posted a net profit of SR20.3 billion.
The board of directors also reviewed the company’s performance in 2007 and approved the company’s budget and plan for 2008, aimed at strengthening its competitiveness in the global markets and achieving its strategic objectives.
The company purchased the plastics unit of General Electric in 2007 for $11.6 billion in cash. It borrowed some $8 billion to finance the acquisition.
Sabic’s affiliate Saudi Fertilisers Co (Safco) will also recommend to the general assembly an increase in the company’s capital from SR2 billion to SR2.5 billion by granting one bonus share for every four shares.
It also said it would offer shareholders a 1-for-4 bonus share issue and SR2 in dividend for the second half of 2007, bringing the total distributed dividends to SR1 billion in 2007.
Sabic operates six interlinked strategic business units: basic chemicals, intermediates, specialty products, polymers, fertilizers and metals. |
