Saudi Arabia’s Ma’aden Plans $10 Billion Capital Increase to Expand Phosphate Operations
Saudi Arabian Mining Co., known as Ma’aden, is set to raise its capital to SR38.03 billion ($10.1 billion), enhancing its stake in the phosphate sector. This capital boost involves acquiring an additional 25% stake in Ma’aden Wa’ad Al-Shamal Phosphate Co. from Mosaic Phosphates B.V., bringing Ma’aden’s total ownership to 85%.
In April, Ma’aden announced plans to purchase over 210 million shares from Mosaic Co. and its subsidiary. The Capital Market Authority approved this acquisition in November. A virtual shareholder meeting on December 11 will seek approval for the capital increase, which involves issuing 111 million new shares at SR10 each, a 3.01% increase in share capital.
The acquisition allows Mosaic Phosphates to transfer its MWSPC stake to Ma’aden, aligning with Ma’aden’s strategic growth in phosphates. MWSPC, a joint venture also involving Saudi Basic Industries Corp., was established in 2014 in Turaif. SABIC will maintain its 15% stake, reinforcing Ma’aden’s status as a global phosphate leader.
Mosaic Netherlands Holding Co., a Mosaic Co. subsidiary, will receive the new shares, with a three-year lock-up period. Limited share transfers will start in the fourth year, becoming fully tradable by the fifth year.
By boosting control over MWSPC, Ma’aden gains access to Mosaic’s marketing rights, valued at SR5.62 billion. This move is expected to increase Ma’aden’s earnings per share due to anticipated synergies and operational efficiencies.
Ma’aden has secured all necessary regulatory approvals and provided shareholders with a detailed transaction timeline. This initiative supports Saudi Vision 2030 by enhancing the Kingdom’s mining sector and diversifying the economy.
In the first half of the year, Ma’aden reported a net profit of SR2 billion, a 160% increase from the previous year. This growth was driven by higher sales volumes, especially in aluminum and gold, along with reduced raw material costs and depreciation expenses.
Ma’aden’s strong performance and strategic moves highlight its leadership in mining and its role in advancing Saudi Arabia’s industrial capabilities.
