Saudi Press

Saudi Arabia and the world
Monday, Apr 15, 2024

PIF plans to acquire ‘significant’ stake in Saudi papermaker MEPCO     

PIF plans to acquire ‘significant’ stake in Saudi papermaker MEPCO     

Saudi Arabia’s Public Investment Fund eyes acquiring a “significant” minority stake in Middle East Paper Co. as the sovereign fund aims to broaden its investments in local businesses.
In a bourse filing, MEPCO said the sovereign wealth fund intends to subscribe to newly issued shares in the company for a price of SR31.50 ($8.40) per share, subject to approval from the Capital Market Authority and other regulatory bodies.

MEPCO shares were trading at SR34 per share on Tadawul as of 12 p.m. Saudi local time on Sunday.

Both companies agreed to execute a non-binding memorandum of understanding which will expire on July 31 or upon entering into a legally binding subscription agreement, whichever comes first, added the Tadawul filing.

It clarified that the implementation of the transaction is subject to both parties entering into a subscription agreement, adding that they will cooperate and negotiate to complete the agreement.

SNB Capital is the financial adviser for MEPCO, whereas the PIF has hired GIB Capital to advise on the deal.

The PIF is one of the largest sovereign wealth funds in the world driven by Saudi Arabia’s Vision 2030 initiative.

It has more than SR2 trillion worth of assets under management and aims to double that figure by 2025 and create 1.8 million jobs, said Yasir Al-Rumayyan, governor of the PIF, on the seventh anniversary of the launch of Saudi Vision 2030.

The acquisition is set to broaden PIF’s scope as it expands its portfolio by diversifying its investments into local non-oil sectors.

Its interest in MEPCO, which offers products for packaging in multiple sectors, comes when the papermaker recorded a 22.58 percent increase in net profits at SR270.73 million in 2022, compared to SR220.86 million in 2021.

Moreover, the company has completed 85 percent of its SR365.5 million Juthor paper production plant which is set to begin trial operation in this quarter.

The new plant will produce Jumbo tissue rolls for facial tissues, pocket tissues, napkins, toilet paper, kitchen towels, and C-fold tissues.

Related Articles

Saudi Press
Reports in Gaza: 5 dead from the impact of aid packages dropped by the USA
Apple warns against drying iPhones with rice
China Criticizes US for Vetoing UN Ceasefire Resolution in Gaza
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
The U.S. vetoed a U.N. Security Council resolution calling for a temporary ceasefire in Gaza, instead proposing its own six-week ceasefire plan contingent upon the release of all hostages held by Hamas
Prince William Urges End to Gaza Conflict
Saudi Arabia ranks first in UN index for e-government services in MENA
Israel has gone ‘beyond self-defence’ in Gaza, says Labour’s Streeting
EU Calls for Immediate Ceasefire in Gaza Conflict
Israel Records 20% Drop In GDP, War In Gaza Is The Reason
Saudi Arabia's FDI Inflows Grow with New International Standards
Venture Capitals Power Up Across MENA Region
Saudi Arabia Introduces Terms for 30-Year Income Tax Exemption for Multinational Companies
Saudi FM: Establishing Palestinian state is only pathway for Mideast stability
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
Elon Musk's Starlink Gets License For Israel, Parts Of Gaza
Influencers Exploit X Platform for Profit Amidst Israel-Gaza Conflict
PM Modi Announces Opening Of New CBSE Office In Dubai
International Criminal Court's Chief "Deeply Concerned" By Rafah Bombing
January Funding for MENA Startups Totals $86.5 Million
Saudi Arabia accelerates digital economy growth through Nvidia partnership
Indian female military officers commend Saudi Arabia's progress and women's empowerment
Israel unveils tunnels underneath Gaza City headquarters of UN agency for Palestinian refugees
Israel deploys new military AI in Gaza war
Egypt threatens to suspend key peace treaty if Israel pushes into Gaza border town, officials say
Israel Utilizes AI Military Technology in Gaza Conflict
Saudi Arabia Warns Of A "Humanitarian Catastrophe" If Israel Moves On Rafah
China Warns Iran to Halt Houthi Attacks or Damage Trade Ties
US University To Shut Qatar Campus Due To "Heightened Mideast Instability"
Iran-backed hackers interrupt UAE TV streaming services with deepfake news
Facebook and Instagram Ban Iran's Supreme Leader
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
U.S. Secretary of State Blinken: The Israelis underwent dehumanization on 7.10, this does not give them the right to do this to others.
Defense Technology Showcase Held in Riyadh
Saudi Arabia’s non-oil exports rise 2.5% to $6bn in November 2023: GASTAT
UK Bans Misleading "Zero Emissions" Claims for Electric Cars
Gaza's Teen Inventor Sparks Light in Displacement
Netanyahu Rejects Ceasefire Proposal, Insists On Total Victory Over Hamas
Guterres appoints independent UNRWA review panel
Private Sector Employment Hits Record High with Over 11 Million Employees in January
Rolls-Royce Executive Encourages Saudi Women to Tap into Their Inner 'Superhero' for Success in Defense Industry
Saudi Arabia launches National Academy of Vehicles and Cars
Saudi Tourism Minister Reveals Plan for 250,000 New Hotel Rooms by 2030
SAR to more than double eastern network passenger capacity with new trains deal
Saudi Arabia Enhances National Defense with New Partnerships
Saudi Aramco Maintains Arab Light Crude Pricing to Asia for March
NEOM Establishes New York Office to Support Investors
Saudi Wealth Fund Draws in Over $25 Billion Worth of Investments in Three Years, Al-Rumayyan Reveals
ZATCA Cautions Against Scammer Schemes
INTRA Defense Technologies inaugurates drone factory in Riyadh