Saudi Steel Pipe exercises right of first refusal to buy additional stake in Global Pipe for $9.9 mln

Logo of Saudi Steel Pipe Co. (SSP) 

Saudi Steel Pipe Co. (SSP) received from Global Pipe Co. (GPC), in which SSP owns a 35% stake, a notice issued by EEW Holding GMBH & Co KG (EEW) on the sale of EEW’s 35% interest in GPC.

In a statement to Tadawul, SSP said it will exercise its right of first refusal.  

Upon satisfaction of customary closing conditions, including the General Authority for Competition’s (GAC) approval and receipt of requisite bank consents, SSP will acquire an additional interest of 35% of GPC (or any lower stake that may result from the pro rata allocation among shareholders exercising their rights of first refusal) for up to $9.9 million (or $1.132 per share of GPC).

SSP will assume the corresponding portion of EEW’s guarantees with respect to GPC’s financial debt. Upon the deal closure, SSP will begin consolidating GPC’s assets and results of operations.