Maaden shareholders to vote on capital hike to acquire Mosaic stake in Wa'ad Al Shamal on Dec. 11

Saudi Arabian Mining Co. (Maaden) headquarter

Saudi Arabian Mining Co.’s (Maaden) shareholders will vote on raising capital from SAR 36.91 billion to SAR 38.02 billion by issuing 111.01 million ordinary shares, to fund its acquisition of Mosaic Phosphates BV’s entire stake in Maaden Wa’ad Al Shamal Phosphate Co. (MWSPC), including related marketing rights for phosphate and fertilizer products, during the extraordinary general assembly meeting, scheduled on Dec. 11, 2024.

This will be pursuant to the stock purchase and subscription agreement (SPSA) signed in April between the two companies.

Shareholders will also vote on the transactions and contracts that will be concluded between Maaden and Saudi Basic Industries Corporation (SABIC), in which Mohammed Al-Qahtani has an indirect interest in his capacity as a director in Maaden and SABIC. The contract is related to the share purchase agreement to acquire the entire shares of SABIC Industrial Investments Co. in Aluminum Bahrain (Alba) for SAR 3.62 billion to SAR 3.97 billion without preferential terms.

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Earlier this month, the Capital Market Authority (CMA) approved Maaden’s request to raise its capital from SAR 36.91 billion to SAR 38.02 billion by issuing 111.01 million ordinary shares. The capital top-up is aimed at funding Maaden’s acquisition of Mosaic Phosphates’ entire stake in MWSPC, including related marketing rights for phosphate and fertilizer products, data available to Argaam showed.

Last September, Maaden signed a share purchase agreement (SPA) for the acquisition of the entire 20.62% shareholding of SABIC Industrial Investments Co., a wholly owned subsidiary of SABIC, in Alba. Maaden will acquire 292.8 million ordinary shares in Alba. As a result, Maaden's holding in the company will be 20.62%.

Pursuant to the SPA, the consideration for the acquisition will consist of an amount paid in cash by Maaden to the seller within a range of BHD 363.08 million to BHD 398.2 million ((SAR 3.62-3.97 billion). The agreed-upon amount will be determined in accordance with the mechanism specified in the SPA.