Molan Steel Co. Announces the Purchasing of Mayar International for Industry (Branch of Yara International Limited) in the amount of 34,880.970 SR
| Element List | Explanation |
|---|---|
| Introduction | Molan Steel Co. announces that on
December 26, 2024, it signed an agreement to acquire 100% of Mayar International for Industry. This step aligns with the company’s strategy to expand its growth, as the acquisition includes the factory’s assets, licenses, buildings, and the brand. |
| Transaction Details | Acquisition of Mayar
International for Industry will proceed as follows: 1- The commercial registration of Mayar International for Industry will be transferred from Yara International Limited’s branch to Molan steel company branch. 2- All assets, licenses, and premises belonging to Mayar International for Industry will be transferred. 3- Ownership of the “Cool Master” trademark will be transferred to Mulan Iron Products. 4- The financial payment will be made in seven instalments over seven months from he date of contract signing. 5- Molan Steel Company will assume the debt owed to the SIDF. This step aligns with the company’s expansion strategy aimed at growth and expansion. The factory is expected to contribute positively to increase the company’s sales and profits starting from the first a quarter of 2025, with a gradual profit growth anticipated as the the factory is developed, and its production capacity enhanced. |
| Transaction Amount | 34,880.970 SR |
| Transaction Conditions | NA |
| Parties of the Transaction | Molan Steel Co. - Buyer
Yara International Limited - Seller |
| Transaction Financing Method | Through internal financing sources the buyer. |
| Date of Entering Into The Transaction | 2024-12-26 Corresponding to 1446-06-25 |
| Description of Activity of The Asset Subject of The Transaction | Manufacturing of refrigerators and freezers, water coolers, and electric fans. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Attached |
| Transaction reasons | Having an industrial division to enhance the company’s vertical growth. And reduce the impact of steel price fluctuations by adding value to the products. |
| Expected Impact of the Transaction on the Company and Its Operations | 1. Increased revenue, which will impact positively profitability.
2. Growth in the company’s assets and liabilities.
3. Expansion and growth in the Saudi market. |
| Related Parties | NA |
| Additional Information | NA |
| Attached Documents |  |
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