K&A advises on first share exchange “business merger” between Sipchem and Sahara

K&A is advising the Saudi International Petrochemical Company, (SIPCHEM), in relation to its potential SAR 16 Billion “merger of equals” with Sahara Petrochemicals Company, (Sahara).

The transaction is structured as a share swap, where Sipchem will offer shares in itself to the shareholders of Sahara, in exchange for all of Sahara’s shares, resulting in Sahara becoming a wholly owned subsidiary of Sipchem. This is a first of a kind structure in Saudi Arabia and has only been allowed as a result of the new M&A Regulations that the CMA issued.

The core team members for this landmark transaction were by led by Managing Partner, Zeyad Khoshaim, Projects & Finance Partner Karim Wali, M&A Senior Associate Leen Zaza, Associates Arwa Alfawzan, Rakan Alyusuf, and Ghadah AlOtaibi, along with Trainee Associates Ghaida Meaigel and Meshal Alkolaika.

Zeyad commented “We are proud to have been able to deliver on this landmark transaction entirely by our team in K&A. Our team’s knowledge of the CMA regulations, access to the relevant authorities, and bilingual skills made us the go to firm for transactions of this type.”

This transaction comes on the bank on assisting Natwest Markets/RBS on the USD 5 billion statutory merger between SABB and Al-Alawwal Bank and assisting HSBC on the Savola Group’s first accelerated book-built block trade.