Riyadh – Mubasher: Saudi Basic Industries Corporation (SABIC) and Saudi Arabian Fertiliser Company (SAFCO) have signed a share purchase agreement (SPA), according to a bourse filing.
Under the agreement, SAFCO will acquire 100% of SABIC Agri-Nutrients Investment Company (SANIC), valued at SAR 4.59 billion, in exchange for increasing its share capital and issuance of shares to the owners of the acquired firm.
Accordingly, SAFCO is increasing its capital by 14.25% or SAR 593.69 million to SAR 4.76 billion, through the issuance of 59.4 million new shares at SAR 77.35 per share.
The agreement comes as a result of the shared vision by SABIC and SAFCO to enhance and improve efficiencies through consolidation and realization of synergies, according to a statement to the Saudi Stock Exchange (Tadawul).
The SPA further envisages considerable opportunities for growth and development of competitive advantages in the global marketplace, the statement noted.
SABIC Agri-Nutrients Investment Company owns 50% of both National Chemical Fertilisers Company (Ibn Al Baytar) and Al Jubail Fertilizer Company (Al Bayroni) and 33.33% of Gulf Petrochemical Industries Company (GPIC).
SABIC and SAFCO signed a non-binding memorandum of understanding (MoU) on 4 November 2018, however, the two parties agreed not to include at this stage SABIC’s share in both Ma’aden Phosphate Company and Ma’aden Wa’ad Al Shamal Phosphate Company, which were previously referenced in the non-binding memorandum of understanding.
It is worth noting that SABIC’s ownership in SAFCO post this transaction will increase from 42.99% to 50.1%.
All Rights Reserved - Mubasher Info © 2005 - 2019 Provided by SyndiGate Media Inc. (Syndigate.info).