Jazan Energy and Development Co. (JAZADCO) has signed a final purchase agreement with Rawafed Al Hadara Holding Co. and Quintet Co. Ltd. for Shipping & Maintenance to take full control of Bakri International Energy Co. through a cash and in-kind consideration.
The target company has a market value (FMV) of SAR 592.5 million. The acquirer will pay SAR 67.5 million cash and will issue new shares worth SAR 525 million, the Saudi-listed company said in a bourse filing.
JAZADCO will also pay an additional earn-out equivalent to the average net profit of Jeddah Fuel Supply Co. (35 percent owned by Bakri International) for the three-year period following the start of Jeddah Fuel Supply Co.’s operations.
JAZADCO was valued at SAR 725 million under the agreement, according to the FMV of the company’s stock as of the closing of Dec. 27, 2018 with a reference value of SAR 12.5 per share.
Upon completing the transaction, the sellers will obtain 84 ordinary shares in JAZADCO in return for each share held at Bakri International at a total of 42 million ordinary shares.
JAZADCO’s capital increase will dilute current shareholders’ shareholdings who will retain 45.65 percent stake into the company.
The agreement is pending approvals from regulator and general assembly.
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Key Figures of the Capital Hike |
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Current Capital |
SAR 500 mln |
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Number of shares |
50 mln shares |
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Capital increase (%) |
84% |
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New Capital |
SAR 920 mln |
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New number of shares |
92 mln shares |
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Current shareholders’ stake after the deal |
54.35 % |
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New shareholders’ stake after the deal |
45.65% |
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