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Al-Falih replaced as Aramco chair ahead of IPO
saudI
KHALID al-Falih has been replaced as chair- man of Saudi Aramco by the head of the Public Investment Fund (PIF), Yasir Al-Rumayyan.
The move was reported by Bloomberg on September 2, with Al-Falih appearing to con rm the news on Twitter later that day, saying: “I con- gratulate my brother His Excellency Mr. Yasser Othman Al-Rumayyan,” noting that it was “an important step to prepare the company for the publico ering,wishinghimeverysuccess.”
Al-Rumayyan was already an Aramco board member.
His close relationship with Saudi Crown Prince Mohammed Bin Salman (MBS) is seen has having been instrumental in the move. Riyadh intends to to separate Aramco from the Ministry of Energy in order to avoid con icts of interest.
Both moves are seen to be indicative of MBS’ dissatisfaction with progress in laying the ground for the Aramco IPO, the success of which is thought to be a personal issue for the Crown Prince.
e price eventually achieved for the 5% of shares in Aramco that will be made available
is expected to give the rm a total valuation of around $1.5tn, though MBS has previously said he anticipates the rm to be valued at $2tn. e proceeds from the Aramco listing are due to go to the PIF.
In March, Aramco bought a majority stake in petrochemicals counterpart Saudi Basic Indus- tries Corp. (SABIC) from PIF in a deal valued at $69.1bn. e remainder of the stock remains traded on the local Tadawul stock exchange, with a joint statement by Aramco and SABIC for- mally disavowing any intent by the oil company to further increase its holding.
Al-Falih’s pro le had already su ered a major blow by the announcement on August 30 that Riyadh would split the Ministry of Energy, Industry and Mining portfolio into two separate ministries, stripping his responsibility for indus- try and mining. He does however retain his role as the head of energy policy.
e Ministry of Industry and Mining will
be headed up by Bandar Alkhorayef, chair-
man of Abdullah Ibrahim Alkhorayef & Sons Aramco’s new and head of printing rm Alkhorayef Printing chairman, Yasir Solutions. Al-Rumayyan
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w w w . N E W S B A S E . c o m Week 35 03•September•2019
