Hail Cement Company Signs Agreement with Qassim Cement
Hail Cement Company Signs Agreement with Qassim Cement
Hail Cement Company announced the signing of a binding execution agreement with Qassim Cement. Under this agreement, Qassim Cement will offer to acquire all shares of Hail Cement in exchange for issuing new shares in Qassim Cement.
Hail Cement Company stated on Tadawul today, Sunday, that this is based on the final exchange ratio agreed upon, which is 0.21 shares in Qassim Cement for each share in Hail Cement.
Moreover, it based this on the closing price of Qassim Cement shares at 63.20 Saudi Riyals as of December 21, 2023. This was the last trading day before the date of this announcement).
Therefore, the valuation of Hail Cement’s share price for the purposes of the transaction is 13.27 Saudi Riyals. The total valuation of Hail Cement’s shares for the purposes of the transaction is approximately 1.299 billion Riyals.
After the completion of the transaction, Hail Cement’s shareholders will own approximately 18.6% of Qassim Cement’s capital.
Qassim Cement will publish an offer document containing all the details related to the transaction. This document will come after obtaining the necessary regulatory approvals. Hail Cement will also publish a circular from its board of directors to its shareholders.
It was noted that the concurrent announcement by Qassim Cement about the execution agreement does not represent an announcement of its confirmed intention to make an offer for the purposes of the Merger and Acquisition Regulation issued by the Capital Market Authority.
The confirmed intention to make an offer by Qassim Cement will be announced later after fulfilling these conditions.
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