United Mining Industries Company (United Mining) announced a significant development in its ownership structure, as the company received official notifications of the signing of a binding sale and purchase agreement between its major shareholders and the German company Knauf International GmbH, in a move that reflects the attractiveness of the mining and industrial sector in the Kingdom of Saudi Arabia to foreign direct investment.
Details of the multi-million dollar deal
According to a statement published on the Saudi Stock Exchange (Tadawul) website, the agreement stipulates the sale of all shares held by major shareholders: Al-Mojil Trading and Contracting Company, Abdulqader Al-Muhaidib & Sons Company, and Rashid Development Company Limited (Rashidco). The sold shares amount to 8,850,669 shares, representing 63.2% of the company's total share capital.
The total value of the transaction was set at SAR 504,488,133, meaning that the price per share in this private deal was valued at SAR 57. This transaction is considered one of the most prominent deals in the parallel market (Nomu) during the current period, given the size of the acquisition and the international standing of the buyer.
Mandatory takeover bid and next steps
The ambitions of the German company Knauf did not stop at acquiring a majority stake, but the notice included the buyer’s intention to submit a comprehensive acquisition offer for the remaining percentage of the company’s shares to bring its ownership to 100%, in accordance with the provisions of the merger and acquisition regulations issued by the Capital Market Authority.
The company clarified that the acquisition offer price for other shareholders will be equal to the price of the private placement (SAR 57 per share), in compliance with the requirements of fairness and the protection of minority rights stipulated by the regulations of the Saudi financial market. However, the statement emphasized that this intention remains subject to several essential conditions, most notably the completion of the private placement and obtaining the necessary regulatory approvals from the relevant authorities, including the General Authority for Competition and the Capital Market Authority.
The economic and strategic importance of the deal
This acquisition takes on particular significance when viewed within the context of the current Saudi economic landscape. The entry of a global company the size of Knauf, a world leader in building materials, gypsum, and construction systems, into the Saudi market through the acquisition of an existing company is a strong indicator of international investors' confidence in the Kingdom's investment environment.
This move aligns with the goals of Saudi Vision 2030, which prioritizes the mining and manufacturing sectors as the third pillar of national industry. This acquisition is expected to transfer advanced German technical expertise to the local market, enhance production efficiency, and open new export opportunities, thereby strengthening the competitiveness of Saudi products in regional markets.
Regulatory procedures and notices to shareholders
United Mining Company clarified that the deal will be finalized as a negotiated transaction in accordance with the procedures of the financial market. The company also emphasized that there are no guarantees regarding the completion of the deal or the acquisition offer at this time, advising shareholders to exercise caution and refrain from making hasty investment decisions based on this initial announcement, pending the publication of official documents and full details after obtaining regulatory approvals.
