Lime Industries signs deal to fully acquire Astra Mining, pay debt of SAR164.6M

Logo of Saudi Lime Industries Co.

Saudi Lime Industries Co. signed a conditional binding agreement with Astra Industrial Group and Tharawat Mining Co. to fully acquire their stakes in Astra Mining Co. Ltd, according to a filing to Tadawul.

Under the deal, the company will purchase the stakes for SAR 35 million maximum and settle debts worth SAR 129.6 million with local banks, totaling a maximum of SAR 164.6 million.

Saudi Lime is expected to obtain banking financing from a Saudi bank to cover part of the transaction value, and the remaining amount will be financed through the company's own resources.

Until satisfaction of the transaction conditions, ownership and management of the company will remain with Astra Industrial and Tharawat.

Completion of the transaction is subject to some conditions that should be fulfilled, including signing an escrow agreement by the parties of the agreement, as well as obtaining regulatory approvals. The conditions also include signing a licensing agreement by Astra and Saudi Lime, which grants the latter the right to use the name Astra Mining for a transitional period of six months after the completion of the transaction.

The agreement included representations and warranties from the selling parties as is customary, along with undertakings to indemnify the buyer in certain circumstances.

Additionally, it included the sellers' commitment to allow the buyer to complete the necessary due diligence procedures and studies before completing the transaction. Saudi Lime also retained the right to terminate the agreement before completing the transaction in the event of a material breach of the representations and warranties provided in the agreement.

Furthermore, the parties agreed to complete the transaction within three months from the signing date.

Saudi Lime aims to expand its activities and operations, as well as support its strategic plans and boost sales through increasing production quantity to meet demand in both domestic and international markets for quicklime.

Astra Mining specializes in operating quarries and sand/gravel mines, including crushers, in addition to test drilling related to mineral explorations, and the manufacturing of quicklime, hydrated lime, as well as sound and heat insulation materials.

There are no related parties, the statement said.

The financial impact is expected to appear in Q2 2024, and any significant developments regarding the transaction in accordance with relevant regulations and laws.

The company's 2022 revenues amounted to SAR 33.94 million, as follows: