SABIC Agri-Nutrients Co. Ltd., Riyadh, now expects the completion of its transaction to acquire 49% of the share capital of Dubai-based agri-nutrient blender and distributor ETG Inputs Holdco Ltd. in the first half of FY2023, and the financial impact of the transaction to occur during the first fiscal half, the company said in a filing to the Saudi’s Tadawul.
SABIC Agri-Nutrients and ETG Inputs Holdco’s parent company, ETC Group, also based in Dubai, signed a binding transaction for the stake acquisition in January 2022 (GM Jan. 28, 2022).
The Saudi company originally had expected the deal and the financial impact of the transaction to occur during the second-half of its fiscal year ended Dec. 31, 2022. It agreed to pay an enterprise value of $320 million, based on cash free, debt free, and changes in the working capital adjustment that will determined at transaction completion.
ETG owns more than 350 distribution centers across sub-Saharan Africa, and blends and distributes specialized fertilizers and agro chemicals.
SABIC Agri-Nutrients said the stake acquisition is part of its strategy direction to integrate the value chain to include blending and distribution of agri-nutrients in global markets and move closer to farmers and end-customers.