AI Summary
City Cement plant
City Cement Co.’s board of directors recommended on May 21 to withhold dividends for H2 2024.
The decision aims to support its financial position until the completion of the acquisition deal, the company said in a statement to Tadawul.
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The recommendation will be submitted for approval in the upcoming shareholder meeting.
City Cement last paid a dividend for H1 2024 at 5% (SAR 0.5 per share), data compiled by Argaam showed.
Last October, City Cement and Umm Al-Qura Cement Co. (UACC) signed a share-swap agreement, under which City Cement will offer to acquire all UACC shares in exchange for newly-issued shares in the company.
The table below highlights the acquisition details:
|
Acquisition Details |
|
|
Acquisition Method |
City Cement to acquire all shares of UACC |
|
Compensation Method |
Issuing new shares for UACC shareholders |
|
Share Swap Ratio |
1.11 new shares in City Cement for each share of UACC |
|
New Entity |
City Cement Co. |
|
UACC Post-Acquisition |
Its shares will be delisted from Tadawul, and it will become a wholly owned subsidiary of City Cement |
|
City Cement Pre-Acquisition Capital |
SAR 1.40 bln |
|
Capital Increase Value |
SAR 611.64 mln |
|
Number of Newly Issued Shares |
61.16 mln |
|
City Cement Post-Acquisition Capital |
SAR 2.01 bln |
|
Capital Increase Percentage |
43.69% |
|
UACC Stock Valuation based on swap-ratio |
SAR 20.06 |
|
City Cement Stock Valuation for Acquisition Process |
SAR 18.04 |
|
Total Valuation of UACC Share Capital for Acquisition Purpose |
SAR 1.10 bln |
|
UACC Shareholders’ Stake in New Entity |
30.40% |
|
City Cement Shareholders’ Stake in New Entity |
69.60% |
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