Hail Cement Co. and Qassim Cement Company have decided to carry out an acquisition procedure by signing a legally binding implementation agreement.
The acquisition will include increasing QCC's share capital in order to enable the purchase of all of HCC's issued shares via a securities exchange offer.
The General Authority for Competition has granted HCC permission, and the CMA has accepted QCC's application for a capital increase related to the deal.
After the previous correspondence from Hail Cement Co. ("HCC") to Qassim Cement Company ("QCC") on May 11, 1445H (or December 24, 2024G) regarding the execution of a legally binding implementation agreement, both parties agreed to move forward with the acquisition process by increasing QCC's share capital in order to make it easier to acquire all of HCC's issued shares through a securities exchange offer in accordance with Article 26 of the Merger and Acquisition Regulations and the Regulations on the Offer of Securities and Continuing Obligations issued by the Capital Market Authority ("CMA") board (the "Transaction"). As previously disclosed by HCC on the Saudi Exchange website on 05/08/1445H (or 15/02/2024G), the company received approval for the economic consolidation resulting from the Transaction on 04/08/1445H (or 14/02/2024G) from the General Authority for Competition. Following that, on 07/11/1445H (or 15/05/2024G), the CMA granted QCC's request for a capital increase for the Transaction and released the Offer Document. The Circular, which was created in compliance with Article 39 of the Merger and Acquisition Regulations, includes the Board of Directors of HCC's assessment of the offer made to HCC shareholders regarding the transaction as well as the feedback provided to the Board of Directors by SNB Capital Company, the financial advisor for the transaction.