RIYADH, 31 December 2007 — The Saudi Basic Industries Corporation (SABIC) board of directors plans to increase the company’s capital from SR25 billion to SR30 billion by granting one bonus share for every five shares, the board said yesterday, adding that the proposal will be raised at extraordinary general assembly in March next year.
The total number of shares, once approved, would increase by 20 percent to 3 billion from 2.5 billion, Prince Saud bin Abdullah bin Thenayan Al-Saud, SABIC chairman, who presided over the meeting, said in a statement.
He said the board also decided to recommend to the general assembly the distribution of dividends at SR2 per share for the second half of 2007, raising the total of distributed dividends for the year to SR7.5 billion against SR10 billion in 2006 when it posted a net profit of SR20.3 billion.
Only shareholders registered with Tadawul at the end of the assembly’s day will qualify for the bonus share issue and the dividend, it added.
Prince Saud added that the board of directors also reviewed the company’s performance in 2007 and approved the company’s budget and plan for 2008, aimed at strengthening its competitiveness in the global markets and achieving its strategic objectives.
The company purchased the plastics unit of General Electric this year for $11.6 billion in cash. It borrowed some $8 billion to finance the acquisition.
SABIC’s affiliate Saudi Fertilisers Co (SAFCO) will recommend to the general assembly an increase in the company’s capital from SR2 billion to SR2.5 billion by granting one bonus share for every four shares, its board of directors decided to at its meeting on Saturday.
It also said it would offer shareholders a 1-for-4 bonus share issue and SR2 in dividend for the second half of 2007, bringing the total distributed dividends to SR1 billion this year.
SAFCO’s proposed dividend for the second half brings to SR5 the overall dividend for 2007 against SR5.5 for 2006.
SABIC operates six interlinked strategic business units: basic chemicals, intermediates, specialty products, polymers, fertilizers and metals.
