Obeikan Glass Co. Announces the Purchasing of All of The Shareholders' Shares in Obeikan AGC Company in the amount of 22,898,800
| Element List | Explanation |
|---|---|
| Introduction | Obeikan Glass Company is pleased to announces to its esteemed shareholders that a Sale and Purchase Agreement has been signed for the acquisition of all partners’ shares in Obeikan AGC Company (a joint venture in which Obeikan Glass held a 19% shares) between the sellers:
1. AGC France Holding 2. Obeikan Investment Group Company 3. Saudi Advanced Industries Company and the purchaser: Obeikan Glass Company. |
| Transaction Details | The details of the acquisition are as follows:
- Purchase of AGC France Holding's shares in the company, representing 50% of the company's capital, amounting to (3,500) shares, at a total cost estimated at 8,763,738 SAR. - Purchase of Obeikan Investment Group's shares, representing 18.6% of the company's capital, amounting to (1,302) shares, at a total cost estimated at SAR 5,258,243. - Purchase of Saudi Advanced Industries Company's shares, representing 12.4% of the company's capital, amounting to (868) shares, at a total cost estimated at SAR 3,505,495. Accordingly, acquiring all shareholders’ shares, making it a wholly owned subsidiary of Obeikan Glass. |
| Transaction Amount | 22,898,800 |
| Transaction Conditions | 1. The purchaser shall pay the purchase price for the shares to the sellers and settle any outstanding payables.
2. The sellers shall confirm receipt of the financial consideration. 3. Submission of resignations by the Board members appointed by the sellers. 4. Approval of the amended Articles of Association. 5. Execution of a commercial cooperation agreement between the company and AGC France. 6. Termination of the joint venture agreement and related agreements between the company and AGC France. 7. Execution of a licensing agreement and a technical assistance agreement between AGC France and the company, and termination of the coating supply agreement and the project management services agreement. 8. Implementation of the purchaser’s capital increase. 9. Appointment of the company’s new managers by the purchaser. 10. Updating the commercial registration to reflect the new capital owner and the newly appointed managers. |
| Parties of the Transaction | The Shareholders in Obeikan AGC Company, which are:
- Obeikan Glass Company (the Purchaser) - AGC France Holding (the Seller) - Obeikan Investment Group (the Seller) - Saudi Advanced Industries Company (the Seller) |
| Transaction Financing Method | Financed through the company’s available cash resources. |
| Date of Entering Into The Transaction | 2025-08-31 Corresponding to 1447-03-08 |
| Description of Activity of The Asset Subject of The Transaction | AGC Obeikan Glass Company
Obeikan AGC Glass Company was established in 2016 as a mixed limited liability company, and is headquartered in Yanbu Industrial City. The factory's production capacity is 5 million square meters, and the factory produces coated glass, which is a glass product on which chemical compounds are sprayed in thin layers (100 nanometers to 1000 nanometers). Thus, the coating consists of different layers of sub-coatings of different types and thicknesses. The advantages of coated glass include reducing ultraviolet rays, and many other advantages, including higher levels of comfort, reducing radiant heat, potential savings on energy bills, and reducing reliance on heating and cooling systems. |
| Financial Statements for the Last Three Years of the Asset forming the Subject Matter of the Transaction | Financial Information (SAR):
Revenue: - 2022: 110,339,232 - 2023: 120,611,741 - 2024: 124,930,583 Net Profit / (Loss): - 2022: (32,793,862) - 2023: (16,403,028) - 2024: (241,198) Share Capital: - 2022: 70,000,000 - 2023: 70,000,000 - 2024: 70,000,000 Total Equity: - 2022: (73,611,717) - 2023: (90,472,261) - 2024: (90,713,459) |
| Transaction reasons | Through this transaction, Obeikan Glass Company will assume full ownership of Al Obeikan AGC for Glass, a producer of high-performance coated glass products (previously a joint venture in which Obeikan Glass held a 19% shares). Full ownership will provide the Company with greater control over strategy and operations, enable stronger integration and synergies with the wider business, and support Obeikan Glass’s long-term growth objectives, particularly in providing high-quality glass products to its customers. |
| Expected Impact of the Transaction on the Company and Its Operations | The financial impact of this Transaction is expected to be reflected in the Company’s financial results starting from the fourth quarter of fiscal year 2025. |
| Related Parties | Obeikan Glass Company Board of Directors:
- Abdullah Abdulrahman Al-Obeikan (CEO of Obeikan Investment Company and Chairman of the Board of Managers of Obeikan AGC) - Omran Abdulrahman Al-Obeikan (Member of the Board of Managers of Obeikan AGC) - Abdullah Mohammed Al-Humaidhi (Chairman of the Board of Directors of the Saudi Advanced Industries Company) - Abdulrahman Nasser Al-Obaid (Member of the Board of Directors of the Saudi Advanced Industries Company) The following are the major shareholders of Obeikan Glass Company: - Obeikan Investment Company - Saudi Advanced Industries Company |
| Additional Information | Completion of the transaction is subject to the fulfillment of contractual conditions and obtaining the necessary regulatory approvals in the Kingdom of Saudi Arabia. |
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