Figure 4. Aramco 2020 ownership structure. Notes: 1. In 2020, PIF divests its 70% SABIC stake to Aramco for an agreed price (as stated in 29 March 2019 contract) of $69.1 Billion. 2. SABIC becomes (70%) subsidiary of Aramco after 2020 completion of PIF transaction. Aramco will control and direct SABIC via major share. SABIC contributes cash from investment activities (at 70% holding values) to Aramco’s annual cash flow statement from date of deal onward. 3. Aramco issues bonds in 2019 and 2020 as required to pay for SABIC acquisition (bond issued possibly for less than $69.1 billion, as management stated possibly also using cash from operations). (©Authors)

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Saudi Aramco Privatization in Perspective: Financial Analysis and Future Implications

Ruud Weijermars, Jonathan Moeller

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