Saudi Arabian Mining Co. (Ma’aden), Riyadh, is reported to be considering raising up to $5 billion through a rights issue, and is reportedly planning to use the proceeds to help it fund potential acquisitions, according to Bloomberg. According to the report, citing unidentified sources familiar with the matter, the Saudi company is working with HSBC Saudi Arabia on the possible offering that could occur later this year, the size of which has not been finalized.
Ma’aden has not commented on the report, but its President and CEO, Darren Davis, has made no secret that the Saudi company is actively looking for investment opportunities overseas that would complement and strengthen its existing domestic businesses, including in the phosphate fertilizer sector (GM Nov. 2, 2018).
In April, the company announced its first international acquisition with the purchase of African fertilizer distribution company Mauritius-based Meridian Group (GM April 19, p. 1). Ma’aden will acquire an 85 percent stake in Meridian in an all-cash deal that will provide it with a network of operations across southern Africa, from Malawi to Mozambique, Zimbabwe, and Zambia, and a distribution volume of approximately 500,000 mt/y of fertilizer. The deal is expected to be completed by September. Ma’aden will acquire the remaining 15 percent of Meridian’s equity over four years. The financial details of the deal have not been disclosed.