RIYADH: Alujain Holding Corp. said it will increase its ownership in subsidiary National Petrochemical Industrial Co. as it mulls a merger.
The Saudi-listed investment firm, involved in Kingdom’s major petrochemical and mining projects, currently holds a 75-percent stake in NATPET.
Alujain is seeking to acquire an additional stake as part of its ongoing strategic plan to boost growth and efficiency, it said in a bourse filing on Sunday.
The company’s 19.8 million treasury shares will be used to purchase shares in NATPET and replace them with Alujain shares to pave the way for a complete merger.
The potential merger will “maximize efficiency and synergy to serve the interests of the owners of the two companies,” the firm added.
Along with the prospective deal, Alujain said it plans to establish a new plant to produce propylene, polypropylene, and other specialty products.
