Methanol Chemicals Co. Announces an update on the Latest Developments regarding its signing of a binding offer to acquire 84% of ADDAR Chemicals Company (ACC)
| Element List | Explanation |
|---|---|
| Introduction | With reference to its announcement on Tadawul website on 20/02/1445 H. corresponding to 05/09/2023 regarding the issuance of the approval of the General Authority for Competition (GAC) to acquire 84% of the shares of ADDAR Chemicals Company (ACC), Methanol Chemicals Company (Chemanol) is pleased to announce the completion of the financial and legal due diligence procedures, the technical study carried out by a specialized company in the field of specialty chemicals, the financial study prepared by a specialized financial consultant, and the signing of the Share Purchase Agreement (SPA) with the owners of (ACC) for an amount of SAR 46.2 million which will be paid partially and in stages in accordance with the conditions stipulated in the (SPA) based on realizing a number of the agreed upon performance indicators that achieve the targeted return on investment.
It is worth mentioning that the company aims, through this acquisition, to expand its share in the specialty chemicals market and diversify its product basket in line with its strategic and expansion plans. This acquisition will enhance the company's business and products that are not affected by feedstock price fluctuations and the economic cycles of the petrochemical market. It will also contribute to reducing production costs in the acquired company through the integration of its services with Chemanol’s, in addition to providing the acquired company with certain materials required for its production processes, and similarly, some of the acquired company's products are used in Chemanol's production processes. |
| Previous Announcement | Methanol Chemicals Company announces the Latest Developments regarding its signing of a binding offer to acquire 84% of ADDAR Chemicals Company (ACC) |
| Date of Previous Announcement on Tadawul's Website | 2023-09-05 Corresponding to 1445-02-20 |
| Percentage of fulfilled achievement | 90 % |
| Event's Expected Completion Date | 31-03-2024 |
| Reasons for Exceeding the Announced End Date | N/A |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | N/A |
| Impact of the Delay on the Company's Financial Results | N/A |
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