Saudi Arabia's National Industrialization Company (Tasnee) plans to pay SR1.8 billion ($480 million) to raise its majority stake in its Cristal subsidiary by a further 13 per cent, the company said.

Tasnee has submitted an offer to the Gulf Investment Corporation to buy the additional stake in the firm which makes titanium dioxide, thus raising its overall holding to 79 per cent, Tasnee said in a bourse statement.

The deal is expected to be completed in the fourth quarter, will be paid for in instalments and will be financed through Tasnee's own cash reserves and a sharia-compliant Murabaha facility, it added.

Cristal is one of the world's largest producers of titanium dioxide. Gulf Investment Corporation is an investment company jointly owned by the six nations of the Gulf Cooperation Council - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE. - Reuters