SABIC increases its ownership in SAFCO after completing an acquisition deal

The Saudi Basic Industries Corporation (SABIC) announced, today, Monday, that SABIC's acquisition of SABIC for Agricultural Nutrient Investments has been 100% complete.

and SABIC clarified in a statement to the financial market (Tadawul), that the deal resulted in an increase in the company's ownership percentage in SAFCO from 42.99% to 50.1%. < / p>

She also pointed out that this deal comes in line with the joint vision of the two parties, which aims to improve the efficiency and effectiveness of performance through merging and exploiting available opportunities for expansion and growth and enhancing the competitive advantage in Global fertilizer market.

and the company indicated that the name of SAFCO has been modified to become SABIC Agricultural Nutrients Company.

For its part, SABIC Agri-Nutrients Company (formerly SAFCO) announced that it has completed all the procedures for transferring the ownership of SABIC for Agricultural Nutrient Investments, on today's date, which became 100% owned by her

and the company clarified that all procedures for increasing its capital to implement the acquisition deal have been completed, as the shares of SABIC were deposited in its investment portfolio.

She also pointed out that its capital has been increased from 4.17 billion riyals to 4.76 billion riyals, an increase of 14.25%, by issuing 59.37 million new ordinary shares with a nominal value of 10 riyals for the benefit of (SABIC) Company in exchange for the company’s acquisition of all shares in the capital of (SABIC Agricultural Nutrient Investments).

and the company indicated that this deal is considered a deal with a related party, as SABIC is one of the major shareholders in the company and has representatives on the company's board of directors.

also confirmed that the financial impact of this acquisition will appear on the financial results for the first quarter of the fiscal year 2021.

and she said that the cash adjustment will be determined in the total value of the deal at a later time, as it will be calculated based on the (unaudited) financial statements on Thursday, December 31, 2020.