Riyadh – Mubasher: Saudi Arabian Mining Company (Ma’aden) penned a deal to acquire the entire shares of Mosaic Phosphates B.V. in Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).
Ma’aden inked the share purchase and subscription agreement (SPSA) with the Mosaic Company and Mosaic Phosphates B.V. on 29 April 2024, according to a bourse filing.
The Saudi-listed firm will acquire 210.93 million shares, representing 25% of the share capital of MWSPC, a joint venture (JV) between Mosaic, Ma'aden, and Saudi Basic Industries Corporation (SABIC).
Ma’aden will implement the acquisition process by increasing its capital through the issuance of new shares to Mosaic Phosphates B.V. with a par value of SAR 10 per share.
The new capital will stand at SAR 38.02 billion distributed over 3.80 billion shares, instead of SAR 36.91 billion distributed over 3.69 billion shares.
Meanwhile, the share swap ratio is 0.526 new shares in Ma’aden for one share in MWSPC.
It is worth highlighting that the 25% stake in MWSPC along with Mosaic's rights has a valuation of SAR 5.62 billion.
Following the transaction, Ma’aden’s shareholding in the share capital of MWSPC will increase from 60% to 85%, while SABIC will retain a 15% equity ownership.
The acquisition is still subject to the approvals of the Capital Market Authority (CMA) as well as the extraordinary general assembly of Ma’aden.
Ma’aden appointed HSBC Saudi Arabia as the financial advisor and AS&H Clifford Chance Law Firm as the legal advisor for the transaction.
In the January-December 2023 period, the net profits of Ma’aden plunged by 83.07% to SAR 1.57 billion in 2023 from SAR 9.31 billion a year earlier.
