Existing shareholders of Al Masane Al Kobra Mining Co completed the acquisition of Al Masane Al Kobra Mining Co from Trecora Resources.
On September 28, 2020 Trecora Resources completed the Final Closing, which was with respect to an aggregate of 15,712,866 ordinary shares in AMAK to several Purchasers, for an aggregate purchase price of SAR 157 million (approximately US$41.8 million). The purchase price reflected SAR 149 million (approximately US$39.7 million) which was received previously, additional payments from the remaining Purchasers in the amount of SAR 4 million (approximately US$1.1 million) and 50% deposit previously paid to Trecora Resources related to the purchase of certain of the ordinary shares. As of September 28, 2020 Trecora Resource nominees to the board of directors of AMAK resigned effective upon completion of the Final Closing as required by the Purchase Agreement.
The transaction is subject to certain governmental approvals, Ministry of Industry and Mineral Resources in Saudi Arabia and other customary closing conditions. The Ministry of Industry and Mineral Resources in Saudi Arabia approved the transaction recently. The transaction is expected to close in the fourth quarter of 2019. As of January 21, 2020, date for the closing of the transaction has been extended to March 31, 2020. As of March 27, 2020, the closing of the transaction has been extended to September 28, 2020. Trecora expects to receive net proceeds of approximately $60 million in cash, net of both US and Saudi taxes, as well as transaction expenses. Additionally, Trecora will explore options to use remaining proceeds to fund share repurchases, targeted growth opportunities as well as general corporate purposes.
Citi acted as financial advisor and Baker & McKenzie LLP acted as the legal advisor to Trecora. Mamdouh Al Majed & Faisal Al-Enzi audited the balance sheets of Al Masane Al Kobra Mining Co.
Existing shareholders of Al Masane Al Kobra Mining Co completed the acquisition of Al Masane Al Kobra Mining Co from Trecora Resources (NYSE:TREC) approximately $41.8 million September 28, 2020.