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SAFCO EGM approves capital hike to acquire SABIC’s unit

SAFCO EGM approves capital hike to acquire SABIC’s unit
SAFCO's new capital will total SAR 4.760 billion.
SAFCO
2020
-0.25% 80.80 -0.20

Riyadh – Mubasher: The extraordinary general meeting (EGM) of Saudi Arabian Fertilizer Company (SAFCO) approved the board’s recommendation to increase the company’s capital to acquire SABIC Agri-Nutrients Investment Company(SANIC), fully-owned by the Saudi Basic Industries Corporation (SABIC).

The new capital will total SAR 4.760 billion, compared to a previous of SAR 4.166 billion where around 59.368 million new ordinary shares will be issued for SABIC at a par value of SAR 10 per share, according to a bourse filing on Thursday.

The capital hike decision shall be enforceable on all shareholders registered in the register of the Securities Depository Center Company (Edaa) at the end of the second trading day following the EGM meeting date.

In December 2019, SABIC and SAFCO signed a share purchase agreement (SPA), under which SAFCO will acquire 100% of SANIC for SAR 4.59 billion, in exchange for increasing its share capital and issuance of shares to the owners of the acquired firm.