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Ma’aden wants Sabic’s stake in Aluminum Bahrain: Saudi Arabian Mining Company (Ma’aden) signed a share purchase agreement to acquire Sabic’s entire 20.6% stake in Aluminum Bahrain (Alba), according to disclosures to Tadawul here and here. The acquisition involves the purchase of 292.8k ordinary shares for a total cost ranging between SAR 3.62 bn to SAR 3.97 bn, depending on the mechanism determined in the share purchase agreement.
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Background: Earlier this week, Ma’aden agreed to acquire a 51% stake in Aluminum Bahrain (Alba), pending regulatory approval. The agreement would involve Ma’aden swapping its full share capital of subsidiaries Ma’aden Aluminum and Ma’aden Bauxite and Alumina for new shares in Alba. Additionally, Ma’aden signed a binding agreement to purchase a 25.1% stake in its joint venture with Alcoa for USD 1.1 bn.
What happens next? After the transaction, Ma’aden will become Alba’s second-largest shareholder and secure two board seats. It will fund the purchase through its own resources and existing facilities.
ADVISORS- Merrill Lynch KSA is the financial advisor, while AS&H Clifford Chance Law Firm is the legal advisor, while Moelis & Company UK is advising Alba on the transaction.
