AI Summary
One of the city's cement production lines
In a statement to Tadawul, the company said the disapproval was due to a violation of the Capital Market Law and its implementing regulations, specifically related to governance requirements, which necessitate the completion of certain regulatory prerequisites.
City Cement affirmed that it will reevaluate the offer following the fulfillment of all necessary regulatory requirements.
For more news and details on M&As
According to Argaam data, City Cement announced last February plans to submit an offer to acquire all UACC shares through a share swap offer.
The following table indicates details of the acquisition:
|
Key Acquisition Terms |
|
|
Acquisition Method |
City Cement to acquire all UACC shares |
|
Compensation Method |
Issuance of new shares to UACC shareholders |
|
Swap Ratio |
1.11 new City Cement shares for each UACC share |
|
New Entity Name |
City Cement |
|
Post-Acquisition Status of UACC |
Delisting from Tadawul to become a wholly owned subsidiary of City Cement |
|
City Cement Capital Pre-Acquisition |
SAR 1.4 bln |
|
Capital Increase Amount |
SAR 611.64 mln |
|
No. of New Shares Issued |
61.16 mln |
|
City Cement Capital Post-Acquisition |
SAR 2.01 bln |
|
Capital Increase Percentage |
43.69% |
|
UACC Share Price (Based on Swap Ratio) |
SAR 20.06 |
|
City Cement Share Price for Deal Purposes |
SAR 18.04 |
|
Total UACC Value for Transaction Purposes |
SAR 1.10 bln |
|
Ownership of UACC Post-Acquisition |
30.40% of the merged entity |
|
Ownership of City Cement Shareholders Post-Acquisition |
69.60% of the merged entity |
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