Page 13 - DMEA Week 36 2022

DMEA REFINING & FUELS DMEA

Sproule, an international energy consulting The gas is also very pure, with an average
firm, estimates that these sites may hold as much methane content of over 90% and almost zero
as 9.74bn cubic metres (bcm) of helium, or more higher alkanes, which reduces the complexity of
than the total proven reserves of North America. liquefaction. ™

PETROCHEMICALS
KIPCO shareholders OK merger with QPIC

MIDDLE EAST KUWAIT Projects Co. (KIPCO) has reportedly be carried out through a stock swap, with QPIC’s
received a green light for its proposed merger investors receiving 2.24 shares of KIPCO stock
with Qurain Petrochemical Industries Co. for every share of QPIC stock they own.
(QPIC). KIPCO’s shareholders have enabled the
Sheikha Dana Nasser Alsabah, the head of swap by authorising a capital increase of
KIPCO, announced on September 5 that inves- KWD240.8mn ($778.52mn), equivalent to
tors in the company had approved the tie-up 91.2% of the firm’s total current paid-up and
with QPIC. The deal “will make the merged issued capital, to support the issuance of 2.408bn
entity one of the largest listed investment hold- new shares (without any issuance premium).
ing companies in the Middle East and North Currently, KIPCO’s market capitalisation
Africa,” he said at an extraordinary general amounts to KWD403.9mn ($1.306bn). QPIC’s
meeting of shareholders. market capitalisation, by contrast, stands at
KIPCO already holds a 29.53% stake in KWD347.3mn.
QPIC, making it the largest single shareholder KIPCO is Kuwait’s largest listed investment
in the latter company. company, while QPIC makes investments in the
The tie-up will cause QPIC’s corporate struc- petrochemical industry.
ture to be dissolved and its assets, commitments, QPIC’s investment portfolio includes stakes
financial liabilities and rights transferred to in Equate Petrochemicals (Equate), Kuwait
KIPCO. During this process, KIPCO’s shares Aromatics Company (KARO) and The Kuwait
will continue to trade normally on the local Olefins Company (TKOC), while its assets
stock exchange, the Boursa Kuwait. include majority stakes in United Oil Projects
Sheikha Dana did not comment on the exact Co. (UOP), Saudia Dairy & Foodstuff Co.
monetary value of the proposed merger, which (SADAFCO), National Petroleum Services Co.
must still be approved by QPIC’s shareholders. (Napesco), Jassim Transport & Stevedoring Co.
However, he did note that the transaction would (JTC) and Inshaa Holding. ™

KIPCO already owns 29.53% of QPIC’s equity (Photo: KIPCO)

Week 36 08•September•2022 www. NEWSBASE .com P13