Mubasher: Saudi Steel Pipe on Wednesday said that Tenaris Saudi Arabia Co, which recently acquired a 47.79% stake in the steel pipe producer, had no shares in the company prior to the transaction.

“As a shareholder of 47.79% of the share capital of the Company, under Article 24(a) of the Merger and Acquisitions Regulations, Tenaris cannot sell any shares of the Company owned by it for a period of six months of the acquisition without the prior approval of the Capital Market Authority,” Saudi Steel Pipe said in a statement to the Saudi Stock Exchange (Tadawul).

On Monday, Tenaris, a global tube manufacturer and supplier, purchased 47.79% of shares in Saudi Steel Pipe for around $141 million.

In addition, Tenaris does not have any other rights or obligations under relevant laws and regulations arising from the acquisition other than those as a shareholder, the pipe manufacturer said.

Saudi Steel Pipe’s board expects Tenaris' plan would be positive for its operations, shareholders, and employees.

At the end of Wednesday’s trading session, Saudi Steel Pipe’s share fell 0.61% to SAR 19.50.