Goldman tipped to advise Saudi sovereign fund on share sale
Dubai — Saudi Arabia’s sovereign wealth fund has chosen Goldman Sachs, Bank of America Merrill Lynch and Michael Klein as advisers on its planned sale of a stake in petrochemicals firm Sabic to Saudi Aramco, sources familiar with the process said. Citigroup won the mandate to advise Saudi Basic Industries (Sabic), two of the sources said on Monday, while Reuters previously reported that JPMorgan and Morgan Stanley are advising state-owned company Aramco. Aramco plans to buy a controlling stake in Sabic, possibly taking the sovereign Public Investment Fund’s (PIF’s) entire 70% holding. It will provide an alternative source of cash to the fund, after an initial public offering of Aramco that was supposed to raise $100bn was shelved. The deal mandate is a major win for Goldman Sachs, which like other Western investment banks has built up its Saudi business to capitalise on the government’s plans to privatise assets and diversify the oil-dominated economy.
Klein was previously pic...
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