| Element List | Explanation |
|---|---|
| Announcement Detail | On 03/02/1446H (corresponding to 07/08/2024G), Petro Rabigh has become aware that Saudi Aramco and Sumitomo have announced the entry into a share sale and purchase agreement (the “Sale and Purchase Agreement”), pursuant to which Saudi Aramco will acquire from Sumitomo 375,974,998 shares (the “Sale Shares”) in Petro Rabigh, representing approximately 22.5% of the share capital of Petro Rabigh. |
The said announcement provides that upon completion of the transaction, Saudi Aramco will become Petro Rabigh’s largest shareholder, owning approximately 60% of the share capital of Petro Rabigh, and Sumitomo will continue to be a substantial shareholder, owning 15% of the share capital of Petro Rabigh.
Petro Rabigh has taken notice of the fact that Saudi Aramco and Sumitomo have agreed to take certain specific steps which aim to improve Petro Rabigh’s financial position and facilitate its turnaround strategy, which include:
- waiving existing revolving shareholder loans, which Saudi Aramco and Sumitomo made equally to Petro Rabigh, in the aggregate amount of US$1,500,000,000 (SAR 5,625,000,000), with US$1,000,000,000 (SAR 3,750,000,000) waived in 2024G and US$500,000,000 (SAR 1,875,000,000) waived in 2025G; and
- subject to the closing of the transaction, injecting SAR 5,263,649,972 (or SAR 2,631,824,986 from each of Saudi Aramco and Sumitomo) in additional funds into Petro Rabigh through a mechanisms to be agreed with Petro Rabigh.
Additional Information
Petro Rabigh welcomes the steps and measures agreed to be taken by Saudi Aramco and Sumitomo, which highlight their commitment, as key shareholders and lenders, for the long term prospects of Petro Rabigh.
Petro Rabigh looks forward to working with Saudi Aramco and Sumitomo to agree and implement these measures so as to reinforce its financial position by strengthening its balance sheet and reducing the level of accumulated losses.
This announcement by Saudi Aramco and Sumitomo will significantly compliment the measures and initiatives highlighted by the Company when the accumulated losses reached 35%. Petro Rabigh will disclose the impact of the announced transaction and its remedial plan as appropriate.
The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.