Logo of SABIC Agri-Nutrients
SABIC Agri-Nutrients Co. – formerly known as Saudi Arabian Fertilizer Co. (SAFCO) - announced today, Jan. 4, 2021, the completion of the procedures to acquire the entire share capital of SABIC Agri-Nutrients Investment Co. (SANIC), owned by Saudi Basic Industries Corp (SABIC).
The company said in a bourse statement that this deal reflects SABIC Agri-Nutrients Co. as the 100% owner, in addition to the completion of the procedures required for the share capital increase, as the consideration shares were deposited in SABIC’s investment portfolio today, Jan. 4, 2021.
The deal is considered a transaction with a related party, as SABIC is a substantial shareholder in the company and has representatives on the board, namely Yousef Abdullah Al-Benyan, Eng. Samir Ali Al-Abdrabbuh and Dr. Waleed Mohammed Al-Eissa.
The company expects the financial impact of the deal to be reflected in the Q1 2021 results.
SABIC Agri-Nutrients Co. will determine a cash adjustment in the total value of the transaction at a later date and calculated based on the unaudited financial statements for the year ending Dec. 31, 2020. It will then make an announcement on Tadawul of the cash adjustment to the total value of the transaction at that time.
Meanwhile, in a separate bourse statement, SABIC announced the 100% acquisition of SANIC by SABIC Agri-Nutrients Co.
SABIC Agri-Nutrients Co. issued 59.37 million new shares at SAR 10 per share into SABIC’s investment portfolio. Following this, SABIC’s ownership increased from 42.99% to 50.1% in the company.
The deal comes from the shared vision by SABIC and SABIC Agri-Nutrients Co., to enhance and improve efficiencies through consolidation and realization of synergies. It further envisages considerable opportunities for growth and development of competitive advantages in the global marketplace.
According to data compiled by Argaam, shareholders of SABIC Agri-Nutrients Co. approved a 14.25% capital increase to SAR 4.76 billion from SAR 4.17 billion during the extraordinary general meeting held on Nov.18, 2020.
The move aimed to fund the acquisition of SANIC from SABIC.
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Acquisition Details |
|
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Target company |
SANIC |
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Buyer |
SABIC Agri-Nutrients Co. (formerly SAFCO) |
|
Seller |
SABIC |
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Acquisition percentage |
100% |
|
Current Capital |
SAR 4.17 bln |
|
Number of shares |
416.67 mln |
|
Increase |
SAR 593.69 mln |
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Hike (%) |
14.25% |
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New Capital |
SAR 4.76 bln |
|
New number of shares |
476.04 mln |
The Securities Depository Center Co. (Edaa) implemented the securities quantity increase for SABIC Agri-Nutrients Co. into the accounts of eligible shareholders today, Jan. 4.
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