Advanced Petrochemical in the spotlight on South Korea deal
The Tadawul All-Share Index closed 0.10 per cent higher at 11,068.83 points on Thursday, September 4.
Advanced Petrochemical surged 9.74 per cent to hit SAR59.50
Earlier in the day, said the Jubail–based firm said its board of directors approved the equity investment of 35 per cent in a PDH Plant with SK (South Korea) Gas, for the production of propylene in South Korea, through its subsidiary Advanced Global Investment Company (AGIC). AGIC which is owned 95% by Advanced. Sources of AGIC equity participation will be announced later. The total cost of the project is expected to be approx. $1 billion (SAR3.75 billion). The project will be financed 40 per cent equity and 60 per cent debt. “The project has commenced the construction activities and it is scheduled to start up in the 1st half of 2016, with a nameplate capacity of 600,000 Metric Tons per annum,” said Advanced.
The firm also said the board gave green light for the revised dividend distribution policy to be on a quarterly basis. The board also recommended the distribution of dividend to the shareholders for the third quarter of 2014 amounting to SAR 0.75 per share in addition to SAR 0.25 per share as an extraordinary dividend as a one-of event due to additional profit from the Company’s investments in Saudi equity market. The total amount of dividend distribution is SAR163.99 million.