German building materials company Knauf Group has launched a 293.51 million ($112.04 million) tender offer for the remaining 36.8% of Saudi materials producer United Mining Industries (TADAWUL:9583) that it does not already own.
The offer covers up to 5.15 million shares at 57 each.
Saudi Arabia’s Capital Market Authority approved the publication of the offer document and timetable on 27 September, according to a Saudi Exchange disclosure.
Knauf acquired a 63.2% interest in United Mining in May, purchasing approximately 8.85 million shares for 504.45 million. The tender uses the same 57-per-share price paid under that transaction.
Full acceptance would increase Knauf’s ownership to 100% and bring its total expenditure on the acquisition to approximately 797.96 million.
The offer period runs from 27 September to 4 November, with settlement scheduled for 18 November. Shareholders may accept the offer for some or all of their holdings.
Knauf intends to seek the company’s delisting from Saudi’s Nomu Parallel Market if it acquires all remaining shares, subject to regulatory requirements.
United Mining’s board has published a circular setting out its views on the proposal, accompanied by independent financial advice from Alkhair Capital.
Knauf says the transaction is not expected to result in immediate operational changes, with United Mining continuing its existing activities.
United Mining Industries manufactures gypsum and cement-based building products in Saudi Arabia, supported by mining, processing, and manufacturing operations.
Write to France Pinzon at Mining.com.au
Main image: Knauf Group
