Saudi Arabia’s Dabbagh revives plans for stake sale: sources

Saudi-based Dabbagh Group is reviving plans to sell a minority stake in its lubricants and automotive services unit Petromin Corp, Bloomberg reported, citing unnamed sources with knowledge of the matter.

The family-owned conglomerate is working with JPMorgan Chase & Co. on the potential sale of about 20 percent of Petromin, the sources said, adding that the unit could be valued at around $1.5 billion, although no final agreements have been reached.

In 2013, Dabbagh Group bought a 49 percent stake held by Indian conglomerate Hinduja Group to take full control of Petromin. The Jeddah-based firm canceled plans to sell a 20 percent stake in 2014, and was also said to be considering an initial public offering (IPO).

Petromin, the oldest lubricants business in the Middle East, was formed by a royal decree in 1968. It makes over 150 products and exports to more than 35 countries in the Middle East, Africa and Asia, according to its website.

The company was recently appointed dealer for Nissan Motor Co. in the kingdom, which saw it expand into automotive sales and servicing.

A representative for Dabbagh Group didn’t immediately respond to a request for comment, while JP Morgan declined to comment, the news agency added.