SAFCO shareholders approve 14.25% capital increase

The extraordinary general assembly of the Saudi Arabian Fertilizer Company (SAFCO), in its meeting held on Wednesday, approved the Board of Directors ’recommendation to increase the company's capital by 14.25%.

The company said in a statement to the Saudi market (Tadawul), today, Thursday, that the General Assembly approved the Board’s recommendation to increase the capital from 4.167 billion riyals to about 4.760 billion riyals.

and she explained that the increase was approximately 593 million riyals, through the issuance of 59.37 million new ordinary shares in the company at a nominal value of 10 riyals per share (Awad shares) to Saudi Basic Industries Corporation (SABIC), for the purpose of the company’s acquisition of all shares in the capital of (SABIC for Agricultural Nutrient Investments) owned by SABIC.

and the shares of the compensation will be registered and accepted for listing on the Saudi Stock Exchange (Tadawul) in accordance with the terms and conditions of the Shares Purchase and Sale Agreement concluded between the company and SABIC on December 25, 2019, and under the Companies Law And the rules for offering securities and continuing commitments issued by the Authority.

and the decision to increase will be enforceable on all shareholders of the company registered in the company’s records at a depository center at the end of trading on the second day following the convening of the extraordinary general assembly, provided that this increase shall take effect upon the effectiveness of the acquisition. And in accordance with the terms and conditions of the shares sale and purchase agreement concluded between the two parties, which will be announced at the time.

The general assembly also agreed to change the name of the company to SABIC Agricultural Nutrients, and also agreed to amend some articles from the company's articles of association, and to amend the remuneration and nomination committee work list And approval of the audit committee’s recommendation for additional fees resulting from the acquisition process related to the deal.