City Cement to buy Umm Al Qura stake through capital hike
RIYADH, 3 days ago
Saudi-based City Cement Company (CCC) has announced that it has reached an agreement with Umm Al Qura Cement Company to acquire its entire stake by increasing capital through issue of new shares in the company.
Following the capital hike resulting from the transaction, the shareholders of Umm Al Qura Cement (UACC) will own 30.4% of its capital, said City Cement Company in its filing to Saudi bourse Tadawul.
City Cement Company said it had in October announced a share-swap agreement with Umm Al Qura Cement Company, under which it would be acquiring all the company shares in exchange for newly-issued shares in CCC.
The deal will be conducted in accordance with the Capital Market Authority’s (CMA) Article 26 of the Merger and Acquisition Regulations and the Rules on the Offer of Securities and Continuing Obligations. It shall also comply with the terms and conditions stipulated under the agreement, it stated.
The transaction involves a related party, Al Abdullatif Holding Group Company, according to the Merger and Acquisition Regulation as of the date of this announcement, (where it owns 24.53% of CCC’s capital).
Al Abdullatif Holding Group Company also owns (8.7%) of UACC’s capital.
After obtaining regulatory approvals, City Cement said it will publish a shareholders’ circular to its shareholders with all details relating to the capital increase and associated risks.-TradeArabia News Service
