Saudi Arabian Mining Company (Ma’aden) announces the board of directors recommendation to increase its capital to convert debt owed to the Public Investment Fund into new shares
|Announcement Detail||Saudi Arabian Mining Company (Ma’aden) (the “Company”) board, at its meeting on 23/10/1440H (corresponding to 26/06/2019G) recommended an increase to the Company’s share capital to convert its debt to the Public Investment Fund (the “Fund”) (SAR 2,986,387,500) (USD 796,370,000) , assumed by the company , following the transfer of that debt from Ma'aden Rolling Company (MRC). |
The reason for the debt conversion is to improve the Company’s liquidity and credit position and enhance its ability to achieve its growth objectives. The capital increase will not result in any financial liability on or require any cash contribution by the Company’s shareholders.
The recommendation is subject to obtaining the necessary approvals from the competent authorities and the approval of shareholders at a Company extraordinary general assembly thereafter.
An announcement will be made upon the appointment of a financial advisor for the capital increase, as well as upon the submission of a request for capital increase through debt conversion to the Capital Market Authority for its approval. The company will announce in due course any details and further information related to this matter.
PIF has representatives on the Company’s board. Also, the Company’s Board member Engr. Abdullah Al-Issa chairs the board of Riyad Bank which is a lender to MRC.
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.