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Saudi Arabian Mining Company (Ma'aden), the kingdom's flagship mining firm, is set to go ahead with plans to increase its share capital to SAR 38.03 billion ($10.12 billion) from SAR 36.9 billion to boost its phosphate business.
The adjustment through the issuance of more than 111 million ordinary shares represents a 3.01% increase in the company's share capital.
It is meant to fund Ma'aden's acquisition of Mosaic Phosphates' entire 25% stake in Ma'aden Wa'ad Al Shamal Phosphate Company (MWSPC).
MWSPC is a joint venture investment among the Saudi mining giant, which currently owns 60%, Mosaic and Saudi Basic Industries Corporation.
The new shares to be issued have a nominal value of SAR 10 a piece.
Last April, Ma'aden signed an agreement under which Mosaic will receive 111,012,433 shares of the mining firm in exchange for Mosaic's current 25% stake in MWSPC.
The transaction will increase Ma'aden's stake in MWSPC to 85%.
(Writing by Cleofe Maceda; editing by Seban Scaria)
