(Ma’aden) announces changes regarding its subsidiary, Ma’aden Rolling Company
Saudi Arabian Mining Company (Ma’aden) announces that Alcoa Corporation (Alcoa) has agreed to transfer to Ma’aden its 25.1% interest in Ma’aden Rolling Company (MRC), without any cash compensation in exchange for the release of Alcoa from future MRC lenders obligations. This will bring the company’s ownership in MRC to 100%. MRC owns and operates the beverage can rolling facility located in Ras Al Khair Industrial City, together with and the auto rolling assets. Alcoa will retain its 25.1% interest in Ma’aden Aluminium Company (MAC), which owns and operates the Aluminium smelter, and in Ma’aden Bauxite and Alumina Company (MBAC), which owns and operates the bauxite mine in Al Ba’itha and the alumina refinery both in Ras Al Khair Industrial City.
Ma’aden also announces that MRC’s remaining debt to the Public Investment Fund (PIF) in the amount of USD 796,370,000 is being transferred to Ma’aden.
Ma’aden will issue new debt in the same amount to PIF as consideration for the transfer. Ma’aden Board of Directors at its meeting today recommended an increase to Ma’aden’s share capital to convert the new debt to PIF into new shares of Ma’aden, The Board’s recommendation is subject to obtaining the regulatory approvals from the competent authorities and the approval of shareholders at a Ma’aden extraordinary General Assembly thereafter.
The reason for the debt conversion is to improve Ma’aden’s liquidity and credit position and enhance its ability to achieve its growth objectives. The capital increase will not result in any financial liability on or require any cash contribution by Ma’aden’s shareholders.
“This transaction will provide additional flexibility for Ma’aden to manage the rolling business going forward, whilst we will continue our long and successful relationship with Alcoa in our mining, refining and smelting joint ventures,” said Darren Davis, the Company’s President and Chief Executive Officer.
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