SABIC Agri-Nutrients Co. has signed a binding agreement to acquire 49 percent in the share capital of ETG Inputs Holdco Ltd., on Monday for an enterprise value of $320 million (1.2 billion Saudi riyals).

The acquisition will be financed through own resources in addition to bank facilities, the fertilizer company said in a filing on the Tadawul bourse.

The deal will be based on "cash free, debt free and changes in the working capital adjustment that will be determined at transaction completion," it added.

ETG Inputs blends and distributes agri-nutrients products directly to the farmers and end users in several countries in Africa. The acquisition is part of SABIC Agri-Nutrients's strategy to move closer to its customers.

The financial impact of the transaction, subject to regulatory approvals, will appear during the second half of 2022, it said.

(Writing by Brinda Darasha; editing by Seban Scaria)

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