Riyadh – Mubasher: The Capital Market Authority (CMA) has given its green light for Saudi Industrial Investment Group (SIIG) to increase its capital from SAR 4.50 billion to SAR 7.54 billion for a potential acquisition.

SIIG will raise its capital by issuing 304.80 million ordinary shares to acquire the entire shares of National Petrochemical Company (Petrochem), according to a recent bourse disclosure.

Once the shareholders of both entities approve the capital increase and acquisition transaction, the new shares will be issued in favour of Petrochem’s shareholders. Accordingly, the petrochemical firm will be delisted from the Saudi Exchange (Tadawul) once the merger is effective.

It is worth mentioning that last September, Petrochem and SIIG inked a non-binding agreement for a proposed merger.