Zoujaj acquires stakes in Guardian RAK, GulfGuard

The National Co. for Glass Industries (Zoujaj) on Monday signed an agreement to buy additional stakes of ten percent each in Guardian Zoujaj International Float Glass (Guardian RAK) and Saudi Guardian International Float Glass Co. (GulfGuard).

Under the deal, the Saudi glass manufacturer will pay SAR 12 million in cash and issue SAR 2.9 million shares to the sellers, the company said in a statement to Tadawul.

The stakes will be acquired from Al Zamil Group Holding Co. and Eastern Industrial Investment Co. respectively, after which Zoujaj will raise its holding in both companies to 55 percent each.

Zoujaj’s capital will be increased to SAR 329 million from SAR 300 million, with the issued shares accounting for 9.67 percent of the company’s outstanding shares, the statement added.

The deal value, which will be financed from the company’s internal resources and/or bank loans, will be paid in four equal installments starting from the sale completion date.

Zoujaj added that it may terminate the agreement in case of any breach on part of the sellers, Al Zamil and Eastern.