Saudi Steel Pipe acquires additional stake in Global Pipe at $6.3 mln

Logo of Saudi Steel Pipe Co. (SSP)

Saudi Steel Pipe Co. (SSP) completed, on May 17, the acquisition of an additional stake in Global Pipe Co. (GPC).

In a statement to Tadawul, SSP pointed out that it purchased from EEW Holding GMBH & Co KG (EEW) a 22.27% stake in GPC at $6.3 million in cash, to increase its total ownership in GPC accordingly to 57.27%. 

The company incurred the guarantees provided by EEW in relation to GPC financial debts, the statement added. 

 GPC’s balance sheet will be consolidated with its operational results as of May 17, SSP added, indicating its commitment to acquire any EEW shares in GPC, in the event that other shareholders choose not to acquire them. 

Last December, SSP received from GPC a notice issued by EEW on the sale of its 35% interest in GPC, Argaam earlier reported.  

SSP decided to acquire an additional interest of 35% of GPC (or any lower stake that may result from the pro rata allocation among shareholders exercising their rights of first refusal) for up to $9.9 million ($1.13 per share of GPC). 

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