Saudi Aramco to delay Sabic acquisition payment by four years
Aramco will only pay one third of the $69.1bn in cash, its IPO documents revealed
Saudi Aramco is planning to delay payment for its acquisition of a majority stake in Saudi chemicals giant Sabic by four years, according to a document announcing Aramco's intention to float. The deal will close in the first half of 2020.
Saudi Aramco will pay the Public Investment Fund (PIF), Saudi Arabia's sovereign wealth fund, a third of the total $69.1bn in cash, the document revealed. It was previously announced that it would pay half of the amount in cash.
These terms were agreed upon last month, and include a $3bn charge that Saudi Aramco will pay to the PIF for loan charges and promissory notes, up from $1bn noted in Aramco's April bond prospectus.
The deal is the cornerstone of Crown Prince Mohamad Bin Salman's economic diversification programme, providing the PIF with liquidity to fund other projects, and will boost Saudi Aramco's efforts to shift downstream.