CMA disapproves JAZADCO’s capital hike request to buy Jazil Investment

Logo of JAZADCO

The Capital Market Authority (CMA) disapproved Jazan Energy and Development Co.’s (JAZADCO) request to increase its capital from SAR 500 million to SAR 828.03 million, by issuing 32.80 million ordinary shares to acquire Jazil Investment.

The authority said in a statement that the decision was taken after studying the application by the CMA and pursuant to the Capital Market Law and its Implementing Regulations, and based on the CMA's responsibilities to protect investors and because the transaction involves high risks and conflicts of interest.

According to data compiled by Argaam, in February this year, the General Authority for Competition (GAC) approved the economic concentration arising from JAZADCO’s 100% acquisition of Jazil Investment.

JAZADCO signed, in December 2020, a binding and conditional agreement to acquire 100% of Jazil Investment for SAR 410.03 million.