Maaden gets CMA nod on capital hike to acquire Mosaic stake in Wa'ad Al Shamal

Saudi Arabian Mining Co. (Maaden) headquarters

The Saudi Capital Market Authority (CMA) approved Saudi Arabian Mining Co.’s (Maaden) request to raise its capital from SAR 36.91 billion to SAR 38.02 billion by issuing 111.01 million ordinary shares.

The capital top-up is aimed at funding Maaden’s acquisition of Mosaic Phosphates BV’s entire stake in Maaden Wa’ad Al Shamal Phosphate Co. (MWSPC), including related marketing rights for phosphate and fertilizer products.

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The CMA noted that a shareholders’ circular with details on the capital hike and the associated risks will be published before Maaden’s extraordinary general meeting (EGM) is convened. Shareholders should review the circular thoroughly before voting on the proposal.

The market regulator advised shareholders not to vote without reading the circular, as doing so may involve significant risks. They are encouraged to consult a licensed financial advisor for further clarification.

The CMA emphasized that its approval does not endorse the acquisition’s feasibility, only confirming regulatory compliance under the Capital Market Law and its implementing regulations.

Maaden concluded a stock purchase and subscription agreement (SPSA), on April 29, with Mosaic Company (guarantor) and Mosaic Phosphates (seller) to acquire the latter’s 25% stake in MWSPC, totaling 210.94 million shares, according to Argaam’s data.

The acquisition also includes Mosaic’s marketing rights under agreements from April 24, 2014, covering MCP/DCP and fertilizer products, managed by MWSPC.

Upon completion, Maaden’s capital will rise from SAR 36.92 billion to SAR 38.03 billion by issuing 111.01 million new shares at SAR 10 each. Its share capital would also expand from 3.69 billion to 3.80 billion shares, representing a 3.01% increase in Maaden’s pre-top-up capital.