Molan secures SAR 1.05M settlement discount

The agreement provides for a final release between Molan and Yara International upon payment within the specified period

Molan Steel Co. signed on Sept. 30 a payment, reduction, and final release agreement with Yara International Ltd., under which the company will receive a SAR 1.05 million reduction on the outstanding balance in return for early payment.

 

In a statement to Tadawul today, Oct. 1, the company said the outstanding balance of the SAR 7.88 million settlement amount will be reduced under the agreement to SAR 6.83 million, to be paid within 10 business days from the signing date.

 

Payment within the specified period will constitute Yara International’s receipt in full of the contract price and settlement amount, with the parties granting each other a final release in respect thereof, ending the dispute related to the contract and cancelling the promissory notes provided as security for the scheduled payments.

 

If payment is not made within the specified period, the agreement will become null and void, while the settlement agreement will remain in force under its existing terms, including the payment schedule.

 

Molan added that the financial impact of the reduction will be reflected in its financial statements in accordance with the treatment approved by the external auditor, noting that it will announce the completion of the payment in due course.

 

According to data available with Argaam, Molan announced in December 2024 that it had signed a contract with Yara International Ltd. to acquire 100% of Mayar International for Industry for SAR 34.88 million.

 

Case Developments Between Molan and Yara

Announcement Date

Details

Nov. 19, 2024

Molan signed a memorandum of understanding (MoU) to acquire 100% of Mayar International for Industry.

Dec. 29, 2024

Molan signed a contract with Yara International Ltd. to acquire 100% of Mayar International for Industry for SAR 34.88 million.

July 20, 2025

Molan received notice of a commercial lawsuit filed by Yara International Ltd. before the Commercial Court in Riyadh, seeking SAR 17.88 million in alleged outstanding payments arising from the sale of its branch registered under the name of Mayar International for Industry, in addition to SAR 2 million in compensation for litigation damages.

Sept. 16, 2025

Molan announced an initial ruling ordering it to pay SAR 17.88 million in its case with Yara International, while dismissing the other claims.

Oct. 6, 2025

Molan filed a lawsuit against Yara International Ltd. before the Commercial Court in Riyadh to annul the SAR 34.88 million purchase contract for its branch registered under the name of Mayar International for Industry.

Nov. 12, 2025

A final ruling was issued in the lawsuit filed by Yara International Ltd., upholding the initial judgment ordering Molan to pay the claimant SAR 17.88 million only, while dismissing the other claims.

Nov. 17, 2025

An initial ruling was issued suspending enforcement of the judgment ordering Molan to pay SAR 17.88 million to Yara International Ltd., pending a ruling in the contract annulment lawsuit.

Jan. 5, 2026

The Riyadh Commercial Court of Appeal issued a ruling revoking the decision to suspend enforcement of the judgment ordering Molan to pay SAR 17.88 million to Yara International Ltd., and ruled again to dismiss the request to suspend enforcement.

Jan. 8, 2026

The contract annulment lawsuit filed against Yara International Ltd. remained under review at the court of first instance, with no ruling issued to date.

March 29, 2026

Molan signed a final and comprehensive settlement agreement with Yara International Ltd., fully resolving the dispute between the parties over the purchase contract for the branch registered under the name of Mayar International for Industry and settling all related claims and proceedings, while keeping the contract in force and agreeing to pay the outstanding amount under a new payment schedule.

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