SABIC Signs Binding Agreement to Acquire 49% of ETG for 1.2 bln

SABIC Agri-Nutrients Company announced on Monday the signing of a binding agreement to acquire (49%) in the share capital of ETG Inputs Holdco LTD (“SPA”) on 24.01.2022, for an enterprise value of USD (320) million equivalent to (SR1.2) billion, based on cash free, debt free and changes in the working capital adjustment that will be determined at transaction completion.

The company added that ETG Inputs Holdco LTD is a limited liability company engaged in the field of blending and distribution of Agri-nutrients products where its sales is directly to the farmers and end customers in several countries in Africa.

It added this step is part of the Company’s strategy directions to integrate the value chain to include blending and distribution of Agri-Nutrients in the global markets and move closer to the farmers and end customer thus expanding and taking advantage of growth opportunities to keep up of expected developments and to position the Company as a leading player in the global Agri-nutrients industry.

It also added that the transaction is subject to obtaining the required regulatory approvals and other terms and conditions pursuant to the SPA, the company expects that the financial impact of the transaction will appear during the second half of the fiscal year ending on 31.12.2022. The acquisition will be financed by the Company’s resources in addition to bank facilities.

The Company concluded that there are no related parties to this transaction.