JAZADCO cancels Jazil Investment acquisition deal on CMA capital hike disapproval

JAZADCO headquarters 

Jazan Energy and Development Co. (JAZADCO) announced the termination of the agreement for the acquisition of Jazil Investment following the disapproval from the Capital Market Authority (CMA). 

The company said in a bourse statement that the CMA’s approval is one of the precedents for the transaction, and that failure to obtain it led to the termination of the agreement, in accordance with terms and conditions. 

The company said that it will study its next steps and will disclose any development in due course. 

JAZADCO affirmed its commitment to its expansion plans through growth and development in existing sectors, in addition to studying growth opportunities in line with the company's vision and future direction. 

According to data compiled by Argaam, the CMA disapproved JAZADCO’s request to increase its capital from SAR 500 million to SAR 828.03 million, by issuing 32.80 million ordinary shares to acquire Jazil Investment. 

The decision was taken after studying the application by the CMA and pursuant to the Capital Market Law and its executive regulations and based on the CMA's responsibilities to protect investors and because the transaction involves high risks and conflicts of interest. 

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