Saudi Arabia’s City Cement Co has had its plans to acquire 100 per cent of the shares held by Umm Al Qura Cement Co (UACC) via a share swap arrangement put on hold. The Capital Market Authority (CMA) did not approve the prospectus or “offer document” that City Cement had earlier submitted for the acquisition.
“[The rejection] was based on a breach of the Capital Market Law and its implementing regulations, specifically related to governance requirements,” the company said.
The company earlier announced its intention to buy all 55m shares of UACC, each with a nominal value of SAR10 (US$2.66). In exchange, the company intended to issue more than 61m of its own shares for UACC’s shareholders.
However, City Cement Co affirms its commitment to full regulatory compliance and will evaluate the possibility of resubmitting the offer following the fulfilment of all necessary regulatory requirements. "The company will keep its shareholders and stakeholders informed of any material developments in this regard," a company statement read.
