Molan pays SAR 6.83M to Yara International, settles financial obligation

Logo of Molan Steel Co.

Molan Steel Co. paid SAR 6.83 million to Yara International Ltd. on Oct. 1, settling its financial obligation in full under a payment and reduction agreement.

 

The payment represents the full amount due after an SAR 1.05 million reduction and was made within the period specified in the agreement, the company said in a statement to Tadawul.

 

The payment settles Molan's financial obligation to Yara International related to the purchase price of the branch commercial registration registered under Mayar International Industry Co., as well as the settlement amount, the company added.

 

Under the agreement, Yara International will receive the full purchase price and settlement amount, resulting in a final release between the two parties with respect to both amounts and releasing Molan from any related liabilities.

 

The payment also represents the final settlement of the dispute related to the contract and renders the promissory notes provided as security for the scheduled payments null and void, Molan said.

 

All other rights and obligations of the two parties unrelated to the purchase price and settlement amount will remain in effect under the settlement agreement, the company noted.

 

The impact of the reduction will be recognized in Molan's financial statements as determined by its external auditor.

 

Molan said it paid SAR 6.83 million instead of the remaining balance of SAR 7.88 million, reflecting a reduction of SAR 1.05 million under the payment and reduction agreement.

 

According to Argaam data, Molan announced in December 2024 that it had signed an agreement with Yara International to acquire 100% of Mayar International for SAR 34.88 million.

 

Molan recently signed an agreement to obtain a new interest-free loan of SAR 4.6 million from its major shareholder, Dar Al-Takamul Holding Group, to settle the remaining balance of the purchase price of the branch commercial registration registered under Mayar International.

 

The following table highlights the developments in the case since its inception:

 

Molan -Yara Dispute Developments

Date

Details

Nov. 19, 2024

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

Dec. 29, 2024

Molan signed an agreement with Yara International to acquire 100% of Mayar International for SAR 34.88 million.

July 20, 2025

Molan received notice that Yara International had filed a commercial lawsuit with the Commercial Court in Riyadh, seeking SAR 17.88 million in financial claims. Yara alleged that the amount represented financial dues arising from the sale of its branch registered under Mayar International, in addition to SAR 2 million in compensation for litigation damages.

Sept. 16, 2025

Molan announced that a preliminary judgment ordered it to pay SAR 17.88 million in the case filed by Yara International, while rejecting the other claims.

Oct. 6, 2025

Molan filed a lawsuit with the Commercial Court in Riyadh against Yara International, seeking to annul the SAR 34.88 million agreement to purchase its branch commercial registration registered under Mayar International.

Nov. 12, 2025

A final judgment was issued in Yara International's lawsuit, upholding the preliminary judgment ordering Molan to pay SAR 17.88 million and rejecting the other claims.

Nov. 17, 2025

A preliminary judgment suspended enforcement of the judgment ordering Molan to pay SAR 17.88 million to Yara International, pending a ruling in the contract annulment case.

Jan. 5, 2026

The Riyadh Commercial Court of Appeal overturned the decision to suspend enforcement, ordered Molan to pay Yara International SAR 17.88 million, and ruled that the request to suspend enforcement was inadmissible.

Jan. 8, 2026

The contract annulment lawsuit filed by Molan against Yara International remained pending before the Court of First Instance.

March 29, 2026

Molan signed a comprehensive final settlement agreement with Yara International, resolving the dispute concerning the agreement to purchase the branch commercial registration registered under Mayar International and settling all related claims and proceedings. The agreement remained in force, with Molan agreeing to pay the remaining amount under a new schedule.

Sept. 30, 2026

Molan signed a payment, reduction, and final release agreement with Yara International, under which it received a SAR 1.05 million reduction in the remaining balance in return for early payment.

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