| ELEMENT LIST | EXPLANATION |
|---|---|
| Introduction | 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 |
| Counterparty | Oman Chlorine SAOG, Horizon Energy LLC, MS Union Chlorine and, Oman Industrial Development Company SOAC. |
| Memorandum Subject | 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. |
| Memorandum Duration | 90 days from the date of signature |
| Related Parties | NA |
| Financial Impact | 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. |
| Additional Information | 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. |
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