The Saudi Public Investment Fund (PIF) has signed a binding agreement to acquire a 23.08% stake in Jeddah-based Middle East Paper Company (MEPCO) for around 630 million riyals (approx. $168 million).
As per the agreement, MEPCO will increase its capital by up to 866.7 million riyals with the suspension of the priority right.
According to the company’s statement to Tadawul, the Saudi Stock Exchange, the deal will take place by subscribing to new shares that will be issued to raise the company’s capital, amounting to around 20 million ordinary shares at a value of 10 riyals per share.
The statement also revealed that the PIF will become MEPCO’s largest shareholder, subscribing to all new shares at a price of 31.50 riyals per share.
The capital increase is still subject to obtaining approvals of the Capital Market Authority (CMA) and Tadawul, besides the company’s general assembly, in addition to the necessary internal approvals for fund, said a company disclosure.
