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Ma’aden ups its stake in JV with Mosaic + Sabic: Saudi Arabian Mining Company (Ma’aden) is acquiring an additional 25% stake in Ma’aden Wa’ad Al Shamal Phosphate (MWSPC) — its joint venture with petrochemicals giant Sabic and the Mosaic Company — to bring its total stake in MWSPC to 85%, it said in a disclosure to Tadawul.
The details: Mosaic will offload its entire 25% stake in MWSPC in exchange for 111 mn newly issued shares in Ma’aden, which will amount to 2.9% of Ma’aden’s share capital following the transaction. The mining company set a share swap ratio for its outgoing shares of 0.53 for every 1 share in MWSPC, which brings the total transaction value — including guarantor’s rights and the fertilizer product marketing agreement — to SAR 5.6 bn. Both parties will be held to a lock-up period of 5 years.
Advisors: Our friends at HSBC are financial advisors to Ma’aden, while AS&H Clifford Chance will provide counsel to Ma’aden.
IN CONTEXT- The Industry and Mineral Resources Ministry unveiled last month a SAR 685 mn incentive program for mining exploration in the Kingdom as it aims to expand the sector and tap reserves of gold, phosphate and others.
ALSO- Ma’aden’s Wa’ad Al Shamal Phosphate 3 project was among 12 private-sector projects selected for government incentives and support under the Shareek program last month.
IN OTHER M&A NEWS-
Tadawul-listed Almunajem Foods signed a share purchase agreement to acquire an additional 23% of Balady Poultry Trading Co, Almunajem said in a Tadawul disclosure yesterday. Almunajem will snap up the stake — equivalent to 1.51 mn shares — at SAR 120 per share, valuing the transaction at a total of SAR 181.3 mn.
Ownership structure post-transaction: Once the acquisition closes, Almunajem will hold a 40% stake in Balady Poultry, after previously holding a 17% stake, it said in the disclosure.
Background: Almunajem had acquired an initial 17% stake in Balady Poultry in March in a transaction worth SAR 134 mn, after signing a non-binding MoU to snap up Balady Poultry stakes. The Saudi Advanced Industries Company also snapped up 567.2k shares in Balady Poultry from “multiple shareholders” over separate batches dating back from September 2023 until March.
