Riyadh – Mubasher: Saudi Arabian Mining Company (Ma’aden) have entered into a share purchase and subscription agreement with Alcoa Corporation, AWA Saudi Limited, and Alcoa Saudi Smelting Inversiones S.L.
Ma’aden plans to acquire Alcoa’s share in Ma’aden Aluminium Company (MAC) and Ma'aden Bauxite and Alumina Company (MBAC), according to a bourse disclosure.
On the other hand, Alcoa will receive $150 million in cash and be issued shares representing around 2.21% of Ma’aden’s share capital, increasing its interest in the Saudi mining group.
Based on a valuation of SAR 4.12 billion, the acquisition consideration will consist of a cash payment by Ma'aden to AWA Saudi Limited of SAR 562.50 million. Meanwhile, the remaining SAR 3.56 billion amount will be paid through the issuance of new shares in Ma’aden to the sellers.
The acquisition, which is expected to be completed by the first quarter (Q1) of 2025, will streamline how Ma’aden’s aluminium business operates.
Meanwhile, the transaction is subject to regulatory and corporate approvals, in addition to the completion of other closing conditions that are customary for this type of transaction.
Bob Wilt, CEO of Ma’aden, said: “As we continue to grow our aluminium business, streamlining the management structure of this business is an important step forward for Ma’aden as we prepare for greater future growth and continue to build the mining sector as the third pillar of the Saudi economy.”
William F. Oplinger, Alcoa’s President and CEO, commented: “The transaction simplifies our portfolio, enhances visibility in the value of our investment in Saudi Arabia and provides greater financial flexibility to Alcoa, an important part of improving our long-term competitiveness.”
In April, the Tadawul-listed company entered into a share purchase and subscription deal with Mosaic Company and Mosaic Phosphates B.V. to acquire an additional stake in Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).
Ma’aden recorded a 160.35% leap in net profit to SAR 2 billion during the first half (H1) of 2024, compared to SAR 770.36 million in H1-23.
