Obeikan Glass takes full ownership of Obeikan AGC for SAR 22.9M

Obeikan Glass manufacturing facility

Obeikan Glass Co. signed an agreement, on Aug. 31, to acquire the remaining stake in Obeikan AGC Co., a joint venture (JV) where it holds 19% of shares.

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The glass manufacturer agreed to buy AGC France Holding’s 50% stake, or 3,500 shares, in the target company for $3.77 million (SAR 14.4 million). It will also acquire the 18.6% holding, or 1,302 shares, of Obeikan Investment Group (OIG), for SAR 5.26 million, and the 12.4% stake, or 868 shares, held by Saudi Advanced Industries Co. (SAIC), for nearly SAR 3.51 million.

The deal terms include the settlement of dues, confirmation of payments, board resignations from seller representatives, ratification of amended bylaws, and termination of the JV agreement with AGC France.

The parties will sign cooperation, licensing, and technical assistance agreements, terminate coating supply and project management contracts, and the buyer will implement a capital increase, appoint new directors, and update the commercial register.

Obeikan Glass said the acquisition will be funded through existing cash, with the expected financial impact starting in Q4 2025. However, the deal is awaiting the contractual conditions and regulatory approvals in Saudi Arabia.

The move gives Obeikan Glass full ownership of Obeikan AGC, a company specializing in the production of high-performance coated glass (which was previously a JV 19% owned by Obeikan Glass).

The company explained that this acquisition will give the company greater control over its strategy and operations, enhance integration and synergies with the rest of its business lines, and support its long-term growth goals, particularly in providing high-quality glass products to its customers.

Related parties include Abdullah Al-Obeikan (CEO of Obeikan Investment Group, Chairman of Obeikan AGC), Omran Al-Obeikan (board member at Obeikan AGC), Abdullah Al-Humaidhi (Chairman of Saudi Advanced Industries Co. (SAIC)), and Abdulrahman Al-Obaid (board member at SAIC), the company stated.

According to the statement, Obeikan AGC was established in 2016 as a mixed limited liability company based in Yanbu Industrial City.

The plant has an annual production capacity of 5 million square meters and manufactures coated glass, a multilayer insulated product created by spraying chemical compounds in thin layers ranging from 100 to 1,000 nanometers, resulting in coatings of different types and thicknesses.