Currently, both companies intend to finish their evaluation of the Proposed Merger with the intention of being in a position to sign the Merger Agreement in the first half of 2014.The MoU will expire on the earlier of the date on which the Merger Agreement is signed by the companies or by notice for termination of the studies from either company to the other.

The entry into the MoU does not mean that the Proposed Merger will be agreed between the two companies, that an offer will be eventually made in relation to the Proposed Merger, or that the terms or timing of any potential offer have been confirmed. If the terms of the Proposed Merger are agreed, it is expected that it will be subject to various conditions and approvals including, without limitation, the approval of the Capital Market Authority, the approval at the general assembly of each company, and the approval of the competent Saudi Arabian regulatory authorities.

In respect of the Proposed Merger, the Company has appointed Morgan Stanley Saudi Arabia as its financial advisor, Al-Jadaan & Partners Law Firm as its Saudi legal advisor, Clifford Chance LLP as its international legal advisor, and IHS Inc. as its technical and market consultant. Sipchem has appointed HSBC Saudi Arabia Limited as its financial advisor, Zeyad S. Khoshaim Law Firm as its Saudi legal advisor, Allen & Overy LLP as its international legal advisor, Jacobs Consulting as its technical consultant, and Nexant as its market consultant.         

Sahara Petrochemical