Red Sea completes 51% First Fix acquisition after listing new shares

Red Sea completes the acquisition of 51% stake in First Fix through a capital hike via debt conversion

Red Sea International Co. completed the listing of new shares issued to creditors as part of its capital increase plan through a debt-to-equity swap, the company said in a statement to Tadawul.

With the listing finalized, all conditions for the acquisition of a 51% stake in Fundamental Installation for Electric Work Co. (First Fix) have been fulfilled, marking the completion of the debt conversion transaction.

According to Argaam data, Red Sea’s shareholders approved on Nov. 12 a 59.64% capital increase through a debt-to-equity conversion, resulting in the issuance of 18.03 million new shares.

The approval included the conversion of SAR 353.48 million in debts owed to the selling shareholders of First Fix -MSB Holding, Fares AlSaadi, and Ziad AlSayegh —through the issuance of 13.39 million shares.

It also covered SAR 41.31 million in debts owed to Mohammed Haider Binladen and Ghaleb Al-Sharif, who became direct creditors under assignment agreements, in exchange for 1.57 million shares.

In addition, SAR 81.23 million in loans owed to Al-Dabbagh Group Holding Co. were converted into 3.08 million shares. The nominal value of these newly issued shares amounts to SAR 30.77 million.

Red Sea set the conversion price at SAR 26.4 per share, including an issuance premium of SAR 16.4 above nominal value.