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MEOG FINANCE & INVESTMENT MEOG
Aramco chair hints at
further share divestment
SAUDI ARABIA SAUDI Aramco chairman Yasir Al Rumayyan Prince as saying that the share transfer would
teased the potential divestment of the company’s support the Kingdom’s long-term strategy of
shares when speaking to reporters in Riyadh this restructuring the Saudi economy in line with
week. Vision 2030. He reiterated the aim of increas-
Al Rumayyan, who is also governor of the ing the PIF’s assets under management (AUM)
Public Investment Fund (PIF), the Kingdom’s to SAR4 trillion ($1.07 trillion) by 2025, with
sovereign wealth fund, told Bloomberg that the transfer taking the current level to around
investors should “stay tuned” because Aramco $620bn. The PIF’s AUM is expected to reach
has “a big divestment programme.” SAR7.5 trillion ($2 trillion) by the end of the
The comments come as reports circulate decade.
about the company’s plans to list its Aramco The PIF has plans in place that will see it
Trading Co. (ATC) division in a deal that is spend SAR3 trillion ($800bn) into new sectors
seen valuing the trader at around $30bn. Asked over the coming decade while creating 1.8mn
about the potential for an initial public offering direct and indirect jobs by 2025 and Prince
(IPO) of ATC and the timing of such a move, Al Mohammed said that the investment level would
Rumayyan said: “We are not precisely sure.” reach SAR1 trillion ($267bn) by that date.
In February, Crown Prince Mohammed In a regulatory filing on the TASI, Aramco
bin Salman (MbS) transferred 4% of Aramco’s said: “This is a private transfer between the State
shares to PIF. Following the transfer, the Saudi and PIF, and the Company is not a party to the
state holds 94.3% of Aramco, the PIF 4% and the transfer and did not enter into any agreements
remaining 1.7% was sold during the company’s or pay or receive any proceeds from the trans-
2019 IPO on the local stock exchange, Tadawul fer,” adding that “the shares transferred will rank
All Share Index (TASI). equally alongside other existing ordinary shares.”
Based on the company’s current valuation of Seeking to dispel any potential market con-
around $2 trillion, the shares are estimated to be cerns, the company said that the transfer would
worth $80bn and will yield the PIF an annual not have any impact on its operations, strategy,
dividend of roughly $3bn until at least 2024. dividend distribution policy or governance
The Saudi Press Agency quoted the Crown framework.
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