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CMA Announces the Approval of Saudi International Petrochemical Company's “Sipchem” request to increase its capital to acquire all the shares of Sahara Petrochemical Company “Sahara” shareholders through securities exchange

​The CMA announces the issuance of its resolution approving Saudi International Petrochemical Company's “Sipchem" request to increase its capital from SAR 3,666,666,660 to SAR 7,333,333,320 by issuing 366,666,666 ordinary shares to acquire all the shares of Sahara Petrochemical Company shareholders through securities exchange.

The Company's capital increase shareholder circular will be published within sufficient time before the Extraordinary General Assembly Meeting. The shareholder circular must include all relevant information that the shareholders need to know before making an informed decision when voting on the capital increase for the purpose described, including the increase in capital and risk factors.

The CMA resolution included the approval of the proposed offer timetable, as well as the approval of the publication of the offer document by Saudi International Petrochemical Company “Sipchem" to the Sahara Petrochemical Company shareholders through securities exchange.

The offer document of  Saudi International Petrochemical Company “Sipchem" will be published to Sahara Petrochemical Company shareholders to acquire all their shares in Sahara Petrochemical Company within sufficient time before the Extraordinary General Assembly Meeting of Sahara Petrochemical Company. The offer document must include all relevant information that the shareholders need to know before making an informed decision when voting on the offer, including the offer information and risk factors.

If the shareholders of Saudi International Petrochemical Company “Sipchem" approved the capital increase, and the shareholders of Sahara Petrochemical Company accepted the offer in their Extraordinary General Assembly Meetings, the new shares will be issued to Sahara Petrochemical Company shareholders who are registered in the shareholders registry at the Securities Depository Center Company and the shares of Sahara Petrochemical Company will be delisted from the Saudi Stock Exchange. ​

A voting decision without reading the shareholders circular and the offer document carefully reviewing its content may involve high risks. Therefore, the shareholder should carefully read the shareholders circular and the offer document to be able to reach a proper voting decision. If the shareholders circular and offer document prove difficult to understand, it is recommended to consult with an authorized financial advisor.

The CMA's approval should never be considered as an endorsement of the acquisition's feasibility. The CMA's approval of the application merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.