Finance Monthly M&A Awards 2019 - Winners Edition

FINANCE MONTHLY M&A AWARDS 2019 25 ABOUT SAUDI ARAMCO We’re a leading producer of the energy and chemicals that drive global commerce and enhance the daily lives of people around the globe. We believe in the power of energy to transform lives, enhance communities, advance human progress, and sustain our planet. With global population forecast to increase by two billion over the next 25 years, even more energy will be required to meet rising demand. It will take all available sources of energy to fill this need — both legacy and alternative sources. And while alternative energy sources are steadily making advances, they will not be capable of meeting future demand alone. Even as we transition to a low emissions future, hydrocarbon-based energy sources will be counted on to meet the bulk of the world’s energy demand well into the future. We’re committed to driving energy efficiency and addressing the global emissions challenge. And as the world’s largest integrated oil and gas company, we believe we are uniquely qualified to make effective contributions to the overall solution. The remaining 30% publicly traded shares in SABIC are not part of the transaction, and Saudi Aramco has no plans to acquire these remaining shares. The transaction is subject to certain closing conditions, including regulatory approvals. Headquartered in Riyadh, Saudi Arabia, SABIC has global operations in over 50 countries with 34,000 employees. In 2018, SABIC’s consolidated production volume across its various business units was 75 million metric tons, and recorded net income of USD $5.7 billion, annual sales of USD $45 billion, and total assets of USD $85 billion. SABIC, with global operations in over 50 countries and consolidated production volume across its various business units of 75 million metric tons, recorded net income of USD $5.7 billion, annual sales of USD $45 billion, and total assets of USD $85 billion in 2018. The transaction will unlock significant capital for PIF’s continued long-term investment strategy in line with the goals and ambitions of the Kingdom as part of Vision 2030. The share purchase agreement was signed on Wednesday, 27 March 2019. The transaction is subject to regulatory approvals and other customary closing conditions. The team was led by Mansoor Alhagbani (AS&H Partner, Head of Capital Markets, Riyadh) and Omar Rashid (Clifford Chance Partner seconded to AS&H as AS&H Co- Head of Corporate) and supported by Rizwan Butt (Senior Associate) and Mashael Al-Shebaiky (Associate). A team of M&A, anti-trust and banking and finance specialists from our Riyadh and London teams are also advising on the different aspects of the transaction, including a core team of partners comprising Guy Norman, Yasser Al-Hussain, Gareth Camp and Nelson Jung and associates including Michael Rueter and Reema Al-Hamoud. H.E. Yasir Othman Al-Rumayyan, Managing Director, Public Investment Fund of Saudi Arabia said: “This is a win-win-win transaction and a transformational deal for three of Saudi Arabia’s most important economic entities. It will unlock significant capital for PIF’s continued long-term investment strategy, underpinning sectoral and revenue diversification for Saudi Arabia. Furthermore, it will introduce a strategic owner that can add considerable value to SABIC and all its shareholders, while capitalizing on SABIC’s strong capabilities to unlock the opportunities for growth that Saudi Aramco, a key player in energy markets around the world, can offer.” Amin Nasser, President & CEO, Saudi Aramco said: “This transaction is a major step in accelerating Saudi Aramco’s transformative downstream growth strategy of integrated refining and petrochemicals. SABIC is a world-class company with an outstanding workforce and chemicals capabilities. As part of the Saudi Aramco family of companies, together we will create a stronger, more robust business to enhance competitiveness and help meet rising demand for energy and chemicals products needed by our customers around the world.” ABOUT SABIC Since SABIC’s founding, its employees have exhibited a remarkable ability to do what others said couldn’t be done. Ranked among the world’s largest petrochemicals manufacturers, SABIC is a public company based in Riyadh, Saudi Arabia. 70% of the Company’s shares are owned by the Saudi Arabian government, with the remaining 30% publicly traded on the Saudi stock exchange. SABIC began in 1976 by Royal decree and its growth has been nothing short of miraculous. Today, the company has operations in over 50 countries with a global workforce of over 33,000 talented individuals. More information about Saudi Aramco can be found at www.saudiaramco.com Learn more about SABIC at www.sabic.com/en TRANSACTION DETAILS COMMENTS FROM THE TRANSACTION