Logo of Middle East Paper Co. (MEPCO)
Middle East Paper Co. (MEPCO) signed, on July 31, a binding subscription agreement with the Public Investment Fund (PIF), the company said in a statement on Tadawul.
According to the subscription agreement, the paper producer will raise its capital to SAR 866.67 million from SAR 666.67 million and suspend the rights shares by issuing 20 million new ordinary shares, representing 30% of the company's current capital, at a nominal value of SAR 10 per share.
The newly issued shares will be fully subscribed by the PIF, which will increase the fund’s ownership in MEPCO’s capital to 23.08% after the capital hike in exchange for new share issuance.
The PIF will pay a subscription amount of SAR 31.50 for each new share, taking the total subscription value to SAR 630 million after obtaining the Capital Market Authority’s (CMA) approval. The PIF is not a related party in MEPCO, the statement said.
The capital hike is subject to obtaining approvals from the CMA, Saudi Exchange (Tadawul), MEPCO’s extraordinary general assembly, in addition to the internal permissions by the PIF.
Following the company's capital increase, MEPCO will appoint two members to its executive committee, while the PIF will nominate two board members.
SNB Capital is the financial advisor for MEPCO, while GIB Capital Company will advise the PIF.
The Saudi-listed company will announce any material developments related to the subscription agreement as per the relevant regulations. MEPCO intends to continue its business as usual until the issuance of new shares is completed.
According to data compiled by Argaam, MEPCO signed, on May 6, a non-binding memorandum of understanding (MoU) with the PIF, under which the latter is set to subscribe to MEPCO’s newly issued shares.
Comments
{{DisplayName}}
{{ElapsedTime}}