Saudi Arabian mining company Ma’aden has announced the acquisition of Mosaic’s 25% stake in phosphate joint venture (JV) Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC).
Ma’aden finalised a stock purchase and subscription agreement (SPSA) with Mosaic Company (guarantor) and Mosaic Phosphates (seller).
Ma’aden will issue nearly 111 million new shares, worth SR5.62bn ($1.49bn), to acquire the 25% stake.
At closing, the seller’s direct and indirect ownership in the company’s capital will constitute around 2.92%, while current shareholders’ ownership will fall to 97.08% from 100%.
The deal will increase Ma’aden’s stake in MWSPC from 60% to 85%, and also significantly expand its phosphate production capabilities.
MWSPC, a JV between Ma’aden, Mosaic and Saudi Basic Industries Corporation, operates a fully integrated phosphate production facility in Saudi Arabia.
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The facility has a design capacity of three million tonnes of di-ammonium phosphate annually.
The acquisition also includes Ma’aden acquiring the guarantor’s rights under the MCP/DCP Product Marketing Agreement and the Fertiliser Product Marketing Agreement, previously held by the guarantor and MWSPC.
The guarantor has agreed to ensure the due and punctual performance of certain obligations of the seller under the SPSA.
This deal is due to close by the end of this year and currently awaits regulatory and shareholder approval.
Upon completion of the Acquisition, Ma’aden’s share capital will increase from SR36.91bn to SR38.02bn, through the issuance of 111,012,433 new shares at SR10 a share.
In July last year, Ivanhoe Electric formed a JV with Ma’aden, called Ma’aden Ivanhoe Electric Exploration and Development, to explore the country’s gold, copper, silver and electric metals.
