A new PE fund to acquire Jubail Chemical Industries: Nama Chemicals accepted a non-binding offer from FAAD Capital Partners and Haddaj Investment to acquire a 40% stake in Nama’s wholly-owned subsidiary Jubail Chemical Industries (Jana), Nama Chemicals and Haddaj Investment’s mother company Sadirat each said in filings to the Tadawul. The SAR 200 mn offer will be made through a newly-set up private equity fund managed by FAAD Capital.

This is not a direct equity sale: Jana will issue new shares to match the fund’s investment, expanding its total equity base while reducing Nama Chemicals’ stake to 60% from 100%, rather than transferring existing shares to the new PF fund.

REFRESHER- Haddaj extended a non-binding MoU — initially inked in July 2024 — for an additional three months to establish the investment fund with FAAD Capital Partners for the purpose of acquiring Jana. The new deadline is now April of this year. The fund would typically work to enhance Jana’s value by focusing on increasing profitability and market expansion, with the goal of eventually exiting the investment to generate returns.

What’s next? Once due diligence is complete and all investment terms are set, the PE fund will work towards formalizing a binding agreement, which will be subject to Nama Chemicals’ shareholder approval before completion.

About Jana: Established in 1999, the Jubail-based company is one of Nama Chemicals’ four subsidiaries. Jana manufactures epoxy resins, with an annual capacity of 120k metric tons. Epoxy resins are in high demand across various industries, including automotive, aerospace, construction, and electronics.

Market reax: Nama Chemical’s share price was down 0.32% yesterday closing at SAR 30.8 apiece.

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