Ma’aden now owns 85% of the Wa’ad Al Shamal JV with Sabic

Ma’aden takes a bigger slice of a JV with Sabic: Ma’aden acquired Mosaic Phosphates BV ’s full 25% stake in the Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC) joint venture, according to a disclosure to Tadawul. This raises Ma’aden’s ownership in the JV to 85%.

The fine print: 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 acted as financial advisors to Ma’aden, while AS&H Clifford Chance provided counsel.