Shareholders clear way for Qassim Cement to acquire Hail Cement

Shareholders of Qassim Cement Co. (QCC) and Hail Cement Co. (HCC) approved the planned takeover of the latter during the extraordinary general meetings (EGM) held on June 10.

In separate statements to Tadawul, the two companies said that shareholders approved raising Qassim Cement’s capital to SAR 1.10 billion from SAR 900 million to fully acquire the 97.9 million shares of HCC.

QCC added that the capital will be increased as per the terms and conditions of the enforcement agreement and will apply after the approvals from respective shareholders.

QCC shareholders also approved amending Articles No. 7, 8 and 19 of the company’s bylaws regarding capital, subscription and the company’s management.

Moreover, HCC’s Abdulmalik Sulaiman Al-Rajhi and Abdulaziz Al-Kassabi were appointed to QCC’s board of directors.

QCC added that eligibility for subscription will be for HCC’s shareholders of record by the close of the second trading period following the transaction completion date.

Fractional shares will be compiled and sold on behalf of HCC’s shareholders. Proceeds will be distributed on a pro rata basis, after deducting the relevant costs.

The boards of directors of both companies were authorized to take the necessary actions to implement the abovementioned decisions.