United Mining said that the deal will be executed through a private transaction.
United Mining Industries Co. (UMI) said its substantial shareholders, who own 63.2% of the company, signed an agreement on Jan. 21 to sell their entire stake to Knauf International GmbH.
The shareholders are Al Mojel Trading & Contracting Co., Abdulqader Al Muhaidib & Sons Co., and Rashed Development Co., the company said in a statement to Tadawul.
Under the terms of the agreement, the major shareholders will sell all of their shares, totaling 8.9 million, for SAR 504.5 million, or SAR 57 per share.
The shares will be sold in a negotiated deal.
In the buyer's notice, Knauf International said it plans to submit a takeover offer for up to 100% of the company after completing the negotiated deal, subject to applicable regulations, including the Capital Market Authority’s (CMA) M&A rules.
The offer would be made as soon as practicable following the deal completion, with the offer price set equal to that of the negotiated deal, where minimum pricing requirements apply.
United Mining added that Knauf International’s notice does not constitute a firm intention under M&A regulations and remains conditional on completing the negotiated deal, securing regulatory approvals and agreeing terms with the board.
A binding offer will be announced once these conditions are met.
The Saudi-listed miner noted that the completion of the deal and the takeover offer is subject to obtaining the regulatory approvals, and the absence of objections with third-party consents.
The negotiated deal will be executed in line with Tadawul procedures. Any material developments will be disclosed.
Shareholders are advised not to take any investment decisions until full details and regulatory documents are released, United Mining added.
According to Argaam data, the stake being sold by the company’s substantial shareholders is valued at SAR 398.3 million, based on the Jan. 21 closing price of SAR 45 per share.
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