Court orders Molan to pay SAR 17.9M in preliminary ruling for Yara case

In a statement to Tadawul, the company noted that the ruling is preliminary and subject to appeal within 30 days from the day following the judgment date, adding that it will file an appeal within the statutory period.

Molan added that there are no changes to the costs, as the amount ruled is already recognized in the company’s financial statements for 2024. It also noted that the plaintiff’s claim included an additional SAR 2 million for legal fees, which was rejected in the preliminary ruling.

The ruling justified rejecting the plaintiff’s claim for legal fee compensation, stating that the defendant’s refusal to pay the price was based on the discovery of a material error affecting consent. The court found the defenses sufficient to consider the defendant’s position reasonable, and therefore dismissed the claim for legal fees.

In December 2024, Molan announced signing a contract with Yara to acquire 100% of Mayar International Industry Co. for SAR 34.88 million, Argaam data showed.

In July, Molan received a notice of a commercial lawsuit filed against the company by Yara at the Commercial Court in Riyadh.

Yara sought SAR 17.88 million in alleged outstanding payments related to the sale of its subsidiary, Mayar International. Yara also claimed an additional SAR 2 million in litigation damages.