Ma’aden Signs Agreement to Subscribe to New Shares in Aluminium Bahrain (Alba)

Saudi Arabian Mining Company (Ma’aden) announced on Tuesday the signing of a non-binding heads of terms (HoTs) agreement with Aluminium Bahrain B.S.C (Alba) for Ma’aden to subscribe to new shares in Alba. The agreement, signed on September 16, 2024, outlines that Ma’aden will contribute the entire issued share capital of Ma’aden Aluminium Company (MAC) and Ma’aden Bauxite and Alumina Company (MBAC) in exchange for the new shares. The agreement also covers the transfer of Ma’aden’s marketing and sales rights for MAC’s products.

The HoTs will remain effective until December 31, 2024, unless extended by mutual agreement. The final terms, including the number of new shares and Ma’aden’s ownership percentage in Alba, will be determined at a later stage.

The proposed transaction is subject to financial, tax, legal, technical, and commercial due diligence. Both parties have also agreed to pursue a cross-listing of Alba’s shares on the Saudi Exchange, subject to further discussions.

Ma’aden’s participation in this deal aligns with its growth and sustainability strategy, aiming to expand its operations within Saudi Arabia and the Middle East, improving operational efficiency and business quality.

Ma’aden has appointed Merrill Lynch Kingdom of Saudi Arabia as its financial advisor and AS&H Clifford Chance as its legal advisor. Meanwhile, Aluminium Bahrain has appointed Moelis & Company UK LLP (DIFC Branch) as its financial advisor.

Further updates on the proposed transaction will be announced in compliance with applicable regulations.