The Saudi Steel Pipe Company, “Saudi Pipes”, intends to acquire an additional 35% ownership stake in Al Alamiah Pipes at $9.9 million.
Al Alamiah Pipe Company is a Saudi steel pipe manufacturing company, in which Saudi Pipes currently owns a 35% stake, and EW Holding GmbH & Co KG (EEW) owns a 35% stake.
And the Saudi Steel Pipe Company “Saudi Pipes” announced, in a statement on “Saudi Tadawul”, today, Wednesday, that it had received a notification from Al Alamiah Pipe Company, issued by EEW Holding GmbH & Co KG “EEW” regarding the sale of 35% ownership interest in EEWV Al Alamiah Pipes.
It added that as a result, and after fulfilling the statutory completion conditions, including the approval of the General Authority for Competition and receiving the required bank approvals, “Saudi Pipes” will acquire an additional ownership stake in Al Alamiah Pipes amounting to 35% or any less share that may result from the proportional distribution among the shareholders exercising their right. In the purchase at a price of up to $9.9 million or $1,132 per share of Al Alamiah Pipes shares, Saudi Pipes will assume the corresponding part of the guarantees provided by EEW in connection with the financial debts of Al Alamiah Pipes.
Upon completion of the transaction, “Saudi Pipes” will begin to consolidate the assets and results of operations of «Al Alamiah Pipes” in its consolidated financial statements.