Maaden shareholders approve capital hike to acquire Mosaic stake in Wa'ad Al Shamal

Saudi Arabian Mining Co.’s (Maaden) shareholders approved the proposal for the company’s capital increase from SAR 36.91 billion to SAR 38.02 billion, through issuing 111.01 million ordinary shares, the company said in a statement to Tadawul.

 

The purpose is to acquire the entire stake of Mosaic Phosphates BV in Ma'aden Wa'ad Al Shamal Phosphate Co, including related marketing rights for phosphate and fertilizer products.  

 

This will be pursuant to the stock purchase and subscription agreement (SPSA), signed in April between the two companies.

 

The company said shareholders also approved the transactions and contracts between Maaden and Saudi Basic Industries Corp. (SABIC), in which board member Al-Qahtani has an indirect interest, as he serves as a board member in both Maaden and SABIC.

 

The transactions involve a share purchase agreement (SPA) for the acquisition of SABIC's entire stake in Aluminium Bahrain (Alba) with the transaction value ranging from SAR 3.62 billion to SAR 3.97 billion, without any preferential terms.

 

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According to data available on Argaam, Ma'aden Wa'ad Al Shamal is a joint venture between Maaden, the seller, and SABIC. The company operates an integrated facility for phosphate production with a design capacity of 3 million tons of diammonium phosphate.

 

Additionally, Maaden signed in September the SPA for the acquisition of the entire 20.62% shareholding of SABIC Industrial Investments, a wholly owned subsidiary of SABIC, in Alba.

 

Pursuant to the SPA, the consideration for the acquisition will consist of an amount paid in cash by Maaden to the seller and will be within a range of BHD 363.08 million (SAR 3.62 billion) to BHD 398.2 million (SAR 3.97 billion). The agreed-upon amount will be determined in accordance with the mechanism specified in the SPA.