RIYADH: The Saudi Arabian Mining Company, known as Ma’aden, has recently obtained approval to elevate its share capital to 38.02 billion riyals (approximately $10.1 billion).
The strategic move is primarily designed to bolster Ma’aden’s phosphate business, a sector of substantial importance to the kingdom’s economic diversification efforts.
The increase in capital will involve the issuance of over 111 million ordinary shares, marking a 3.01 per cent rise in equity.
The decision to enhance capital is closely tied to Ma’aden’s ambition to acquire complete ownership of the Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC) from Mosaic Phosphates.
Currently, the joint venture sees Ma’aden holding a 60 per cent stake, while Mosaic and the Saudi Basic Industries Corporation retain 25 per cent and 15 per cent, respectively. The acquisition, valued at approximately $8 billion, will elevate Ma’aden’s ownership in MWSPC to 85 per cent, thereby solidifying the company’s position in the phosphate market.
The allocation of new shares will be directed to Mosaic Netherlands Holding Company, at a nominal price of SAR10 per share, aligning with an agreement finalized in April between the two entities.
The transaction not only represents a significant financial maneuver but also underscores the broader objective of facilitating sustainable growth within the mining sector, which is critical to Saudi Arabia’s Vision 2030 initiative.
