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18 May 2024

Saudi Basic Industries plans bonus share issue

By Agencies


Saudi Basic Industries Corp. (SABIC) said on Sunday it plans to offer shareholders one free bonus share for every five they hold and two riyals in dividend for the second half of 2007.

SABIC, the world's largest chemicals company by market value, will hold a general assembly towards the end of March 2008 to get shareholders approval for the proposals, SABIC said in a statement posted on the bourse's website.

"The board approved the budget and the company's business plan for 2008 which reflects continuing progress towards achieving its strategic goals," SABIC said in the statement.

Only shareholders registered at the end of the assembly's day will qualify for the bonus share issue and the dividend, it added.

SABIC's proposed dividend for the second half brings to three riyals the overall dividend payment for 2007 versus four riyals in 2006.

Total dividend payout for 2007 will reach 7.5 billion riyals against 10 billion riyals in 2006 when it posted a net profit of 20.3 billion riyals. Boosted by strong Asian demand and higher prices,

SABIC made a net profit of 20.2 billion riyals in the 9 months to Sept. 30 of this year.

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) also said on Sunday it would offer shareholders a 1-for-4 bonus share issue and 2 riyals in dividend for the second half of 2007.

Safco's proposed dividend for the second half brings to 5 riyals the overall dividend for 2007 against 5.5 riyals for 2006. (Reuters)