Saudi Aramco will delay fully paying for the acquisition of a 70 per cent stake in petrochemicals company, SABIC, by four years until September 2025 under terms of a new deal agreed on in October 2019, reported Bloomberg.
The state-owned energy company will also only pay the Kingdom’s sovereign wealth fund about a third of the $69.1 billion price tag in cash, down from half previously, the oil firm said in its intention-to-float announcement. The purchase of the Public Investment Fund’s (PIF) stake in SABIC is set to close in the first half of 2020.
Under the fresh pact, Saudi Aramco will also pay a total of $3 billion in additional costs to PIF in the form of loan charges and promissory notes. When the deal was first agreed on in March 2019, the oil company was set to foot $1 billion in loan charges and promissory notes.
Saudi Aramco’s intention-to-float announcement means around three years of work on the company’s initial public offering—which could be the largest ever—may be drawing to a close. Shares in Saudi Aramco are expected to be listed on the Tadawul in December 2019.