The CMA Approves “Bahri’s” Capital raise to SAR 3.94bn for a prospective merger with “Vela”

The Capital Market Authority (CMA) approved the capital raise Prospectus of the National Shipping Company of Saudi Arabia (Bahri).
 

Bahri is to raise its Capital from SAR 3.15bn to SAR 3.94bn for an intended merger with Vela International Marine Limited Company.

IPO prospectus is to be issued within a reasonable time before the general assembly date. It will contain all necessary information needed by the shareholders to make the decision of voting to the capital raise decision as well as merger’s information and associated risk factors; the CMA said.

The CMA also indicated that the decision without reviewing the prospectus could be underlying high risks as the information provided by the prospectus is vital to the decision.

The agency’s approval for this capital raise doesn’t insure its feasibility as this approval merely means the company’s adherence to the capital market rules and regulations.

According to Argaam’s data; Bahri has signed a fleet and operations’ merger agreement with ARAMCO’s Affiliate, Vela International Marine Company in 2012.

Bahri is expected to make a cash payment of SAR 3.12bn to Vela in addition to 78.75m new shares of Bahri.