Arabian Cement Announces Amendments to Share Swap Deal Structure of Its Subsidiary in a Jordanian Company

Logo of Arabian Cement Company

Arabian Cement Company announced some amendments to the structure of the share swap agreement previously signed by its subsidiary, Arabian Cement Bahrain Holding.

The company said in a statement on Tadawul that its subsidiary will sell part of its stake in Ready-mix Concrete and Construction Supplies Company in the Hashemite Kingdom of Jordan, totaling 7.3 million shares, to Al Hejaz Cement L.L.C., a sister company of Ready-mix Concrete and Construction Supplies Company, at 1.3 dinars per share, with a total value of 9.5 million Jordanian dinars (approximately 50.3 million riyals).

It added that its subsidiary will purchase the stake of Ready-mix Concrete and Construction Supplies Company in Al Qatrana Cement Company in the Hashemite Kingdom of Jordan, amounting to 6.25 million shares, at 1 dinar per share, with a total value of 6.2 million Jordanian dinars (approximately 33.1 million riyals).

It clarified that its subsidiary will exchange the remaining part of its stake in Ready-mix Concrete and Construction Supplies Company, amounting to 1.85 million shares, with Al Rousha for Investment and Trade in return for acquiring Al Rousha for Investment and Trade's stake in Al Qatrana Cement Company, which amounts to 2.27 million shares.

It stated that it will announce the final financial impact after completing the deal, confirming that the expected final result of executing the deal through the mechanism described above is similar to what was previously announced.

The following table illustrates the details of the amendments to be made by Arabian Cement Bahrain Holding:

Amendments

Counterparty

Number of Shares

Price per Share

Total Value

Sale of stake in Ready-mix Concrete and Construction Supplies Company

Al Hejaz Cement Company

7.3 million shares

1.3 Jordanian dinars

9.5 million Jordanian dinars (approximately 50.3 million riyals)

Purchase of stake in Al Qatrana Cement

Ready-mix Concrete and Construction Supplies Company

6.25 million shares

1 Jordanian dinar

6.2 million Jordanian dinars (approximately 33.1 million riyals).

Exchange of remaining stake in Ready-mix Concrete and Construction Supplies for stake in Al Qatrana Cement

Al Rousha for Investment and Trade

1.85 million shares (in exchange for 2.27 million shares)

According to data available on Argaam, Arabian Cement Company had announced last December that its subsidiary, Arabian Cement Bahrain Holding, signed a share swap agreement for its stake in Ready-mix Concrete and Construction Supplies Company in the Hashemite Kingdom of Jordan.

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