Red Sea completes 51% First Fix acquisition after listing new shares

Red Sea completes the acquisition of 51% stake in First Fix through a capital hike via debt conversion

Red Sea International Co. said it completed the listing of new shares issued to creditors under its capital increase through a debt-for-equity swap, according to a statement to Tadawul.

With the listing finalized, all conditions for the acquisition of a 51% stake in First Fix Co. have been met, and the debt-conversion transaction is now complete, the statement added.

According to Argaam data, Red Sea’s shareholders approved on Nov. 12 a 59.64% capital increase through converting debts owed to several parties, resulting in the issuance of 18.03 million new shares.

The approval covered the conversion of SAR 353.48 million in debts owed to the selling partners of First Fix—MSB Holding, Fares AlSaadi, and Zeyad AlSayegh—through the issuance of 13.39 million shares.

It also included converting SAR 41.31 million in debts owed to assignees Mohammed Binladin and Ghaleb Al-Sharif, who became direct creditors under assignment agreements, in return for 1.57 million shares.

Shareholders further approved converting SAR 81.23 million in debts owed to Al-Dabbagh Group Holding Co. under loan and debt-conversion agreements in exchange for 3.08 million shares. The nominal value of these newly issued shares is SAR 30.77 million.

Red Sea said the conversion price was set at SAR 26.4 per share, including an issuance premium of SAR 16.4 above the nominal value.