United Mining: Knauf 100% takeover offer still under discussion

Logo of United Mining Industries Co.

United Mining Industries Co. stated that the potential takeover offer that Knauf International GmbH intends to submit to acquire up to 100% of the remaining shares in the company are still under discussion.

The offer is expected to be submitted as soon as possible after the completion of the related negotiated deal, the company said in a Tadawul statement.

This follows Knauf's recent acquisition of a 63.2% stake in United Mining from major shareholders in a deal valued at SAR 504.5 million.

The company said the relevant procedures will be announced later if a firm takeover offer is decided.

Knauf will issue a firm intention announcement to make the offer, followed by the publication of the offer document outlining all details of the transaction and its implications for the company and its shareholders.

United Mining board will also issue a shareholder circular containing its views on the offer.

The information disclosed in these documents is expected to include details regarding the company’s listing status after the completion of the offer.

Knauf currently intends to seek delisting of the company after completion of the acquisition, subject to obtaining all relevant regulatory approvals.

The company added that any relevant updates will be disclosed in accordance with applicable regulatory requirements.

In January, United Mining said major shareholders, who own 63.2% of capital, signed an agreement to sell their entire stake to Knauf, Argaam data showed.

In the buyer's notice, Knauf said it plans to submit a takeover offer for up to 100% of the company after completing the negotiated deal, subject to applicable regulations, including the Capital Market Authority’s (CMA) M&A rules.

Last week, United Mining announced Knauf's confirmation of completing a negotiated deal to acquire the entire stake of the company’s major shareholders. The deal involved the purchase of 8.9 million ordinary shares, representing 63.2% of the company’s total capital, for SAR 504.5 million.