(MENAFN- Arab News) JUBAIL: Sipchem has signed an agreement to acquire the equities investment of Ikarus Petroleum Industries Company (Kuwaiti Company) in two of its Sipchem affiliates namely International Acetyl Company (11 percent) and International Vinyl Acetate Company (11 percent) on June 23 for an estimated value of $100.2 million (SR375.8 million).
The purchase would be conditional on obtaining the approval of the concerned authorities and other parties. Both companies operate a plant for the production of acetic acid and acetic anhydride and vinyl acetate monomer located in Jubail Industrial City.
Sipchem intends to finance the acquisition through its own resources in addition to Islamic financing facilities.
The process of acquisition and financial impact of such equities investment is targeted to be completed during the third quarter of 2015.
Sipchem currently owns 76 percent equity in each of International Acetyl Company and International Vinyl Acetate Company. After the completion of this transaction Sipchem equity in both companies would increase to 87 percent in each of the two companies with no change in the ownership percentages of the remaining partners. Any relevant updates on the same subject will be announced later.
Ahmad A. Al-Ohali CEO of Sipchem stated: 'This transaction comes in line with the Sipchem's growth strategy to enhance its equity investment in its affiliates with a view to increasing Sipchem's profits and shareholders' value. The acetyls products are an integral part of Sipchem portfolio that serves the downstream industry and have major applications in construction materials as well as in ink paints and solvents manufacturing and many other important products.