Advanced subsidiary, SK Gas agree on share swap deal

Advanced Global Investment Co. (AGIC), fully owned by Advanced Petrochemical Co., signed final agreements with SK Gas Petrochemicals Co., an indirect subsidiary of SK Gas Co. Ltd., to execute a share-swap transaction as part of both parties’ strategic plans.

Under the deal, SK Gas Petrochemicals will acquire all 30% of shares held by AGIC in SK Advanced Co. Ltd.-Korea, Advanced said in a statement to Tadawul.

AGIC will acquire SK Gas Petrochemicals' entire 15% stake in Advanced Polyolefins Industry Co. (Advanced Polyolefins) in Saudi Arabia.

The deal value consists of a share swap plus a net cash consideration of $129.3 million, payable by AGIC to SK Gas Petrochemicals, taking into account the fair value of the transaction.

The transaction is subject to regulatory approvals, and the net cash consideration will be funded from Advanced’s internal resources.

The company added that Advanced Polyolefins owns a propane dehydrogenation (PDH) plant and a polypropylene (PP) plant in Jubail Industrial City, with design capacities of 843,000 tons per year of propylene and 800,000 tons per year of polypropylene.

SK Advanced owns a PDH plant in Ulsan, South Korea, with a design capacity of 600,000 tons per year of propylene, and holds a 49.99% stake in Ulsan PP Co. Ltd., which operates a polypropylene plant with a design capacity of 400,000 tons per year.

The deal aims to increase strategic focus on core assets in Saudi Arabia and enhance operational alignment and governance at Advanced, with the financial impact expected to reflect in Q1 2026.

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