ADES International says cash offer by PIF unit ‘unconditional’

ADES International Holding announced that the purchase offer submitted by Innovative Energy Holding Ltd was declared unconditional in all respects, according to a company statement.

Innovative Energy is a newly-established company, which is jointly owned by the Public Investment Fund (PIF) (a 32.5% stake), Zamil Group Investment Co. (a 10% stake) and ADES Investments Holding, which owns a majority stake of 57.5%.

The purchase offer covers ADES issued shares, which were not owned by Innovative Energy and the other related parties, in line with the DIFC Companies Law.

According to the offer document published by Innovative Energy on March 11, 2021, which became unconditional in all respects, Innovative Energy plans to apply for the UK Financial Conduct Authority as well as London Stock Exchange to delist ADES shares.

Delisting shares will likely take nearly 20 business days. Furthermore, Innovative Energy intends to acquire ADES remaining shares, pursuant to Article 98 of the DIFC Companies Law, in case of not obtaining the other approvals.

“The PIF is delighted to declare the offer for ADES International unconditional, as we continue to support Saudi Arabia’s private sector. This important move aligns closely with PIF’s strategic objective to build partnerships and localize knowledge as outlined in the PIF Program 2021-2025. The partnership will create a national champion in Saudi Arabia in a critical part of the upstream value chain. Alongside the creation of significant employment opportunities in the Kingdom, this will help localize best-in-class practice and lead to the important knowledge transfer of fuel usage reduction technologies which can deliver both cost savings and

environmental benefits”, said Yazeed Alhumied, PIF Head of Local Holdings Investments Division in a statement.

Further to ADES International's announcement on April 12, 2021, as regards fulfilling the requirements of the Saudi General Authority for Competition as well as the approval of ADES shareholders, the offer priced at $12.50 per share in cash for each ADES share was approved.

Accordingly, ADES current issued share capital (excluding treasury shares) will stand at approximately $516 million.