Basic Chemical Industries Co. announces signing a Memorandum of Understanding with Oman Chlorine SAOG, Horizon Energy LLC, MS Union Chlorine and, Oman Industrial Development Company SOAC.
Basic Chemical Industries announces its signing of a non-binding Letter of Intent “LOI” with the the partners of Union Chlorine (LLC) for acquisition of 49% ownership of that company.
Union Chlorine L.L.C is a Chlor-Alkali manufacturer based in the United Arab Emirates- Abu Dhabi.
Memorandum Signing Date
2021-07-13 Corresponding to 1442-12-03
Oman Chlorine SAOG, Horizon Energy LLC, MS Union Chlorine and, Oman Industrial Development Company SOAC.
The purpose of the LOI is to facilitate discussions and reach a final agreement for the acquisition of 49% ownership for Basic Chemical Industries in Union Chlorine L.L.C.
90 days from the date of signature
There is no financial impact on the company by signing the non-binding letter of intent, but in order to reach a binding agreement for the parties, the basic chemical industry company will conduct a due diligence to determine the financial impact that the acquisition will bring to the core chemical industry company.
The Transaction aims to diversify BCI’s product base and markets by
(a) addition of United Arab Emirates as a production market,
(b) access to a wide export base of Union Chlorine LLC, and
(c) addition of capacity of BCI’s core products such as Caustic Soda and Hydro Chloric Acid capacity, as well as addition of new product (Calcium Chloride) to BCI’s portfolio.
The Capital Market Authority and the Saudi Stock 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.