With reference to Molan Steel Company’s announcement dated 20 July 2025 regarding its receipt of a notice of registration of a commercial lawsuit filed by Yara International Limited before the Commercial Court in Riyadh, Molan Steel Company announces that on 15 September 2025, a preliminary judgment was issued in the case.
Previous Announcement
The commercial lawsuit filed by Yara International Limited
Date of Previous Announcement on Saudi Exchange’s Website
2025-07-20 Corresponding to 1447-01-25
Hyperlink to the Previous Announcement on the Saudi Exchange Website
A preliminary judgment was issued in the case on 15 September 2025, requiring Molan Steel Company to pay the claimant an amount of SAR 17,880,970, while dismissing the other claims. It should be noted that the judgment is preliminary and subject to appeal within 30 days from the day following the date of issuance. The Company will file an appeal within the statutory deadline.
Reasons For The Delay on The Date of The Event Previously Announced
Not Available
The costs associated with the event, and if they have changed or not with indication of the reasons.
There are no changes to costs, as the amount awarded in the judgment was already recorded in the Company’s financial statements for the fiscal year 2024. It is also worth noting that the claim included an additional amount of SAR 2,000,000 representing attorney fees, which was dismissed in the preliminary judgment.
Delay consequences on the Company’s financial results
Not Available
Additional Information
The reasoning of the judgment included the dismissal of the claimant’s request for compensation of attorney fees, as the defendant’s refusal to pay the purchase price was based on the discovery of a fundamental error affecting consent. The court found the presented defences sufficient to establish the defendant’s belief in the legitimacy of its position. It was therefore concluded to reject obligating Molan Steel Company to compensate for litigation-related damages.
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