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The Saudi Arabian Mining Company (Ma’aden) has received approval to increase its share capital to 38.02 billion riyals ($10.1 billion) as the company looks to boost its phosphate business.
Ma’aden, which lists the Saudi sovereign wealth fund, the Public Investment Fund (PIF), as a majority stakeholder, said the company will issue more than 111 million ordinary shares, representing a 3.01% increase.
The capital hike will allow Ma’aden to acquire 100% of the shares in Ma’aden Wa’ad Al Shamal Phosphate Company (MWSPC) from Mosaic Phosphates.
MWSPC is an $8 billion joint venture investment of which Ma’aden owns 60%, with Mosaic and the Saudi Basic Industries Corporation owning 25% and 15% each, respectively.
The transaction will increase Ma’aden’s stake in MWSPC to 85%.
Mosaic Netherlands Holding Company is the designated recipient of the new shares, at a nominal value of SAR 10 per share, following the terms of an agreement signed in April between Mosaic and the mining company.
(Writing by Bindu Rai, editing by Brinda Darasha)
