Tenaris Saudi Arabia Co. Ltd. completed the acquisition of 47.79% stake in Saudi Steel Pipes Company from Al Rabiah & Al Nassar Group and minority shareholders for approximately SAR 530 million.
January 20, 2019
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Tenaris Saudi Arabia Co. Ltd. entered into a non-binding memorandum of understanding to acquire 49% stake in Saudi Steel Pipes Company (SASE:1320) from group of shareholders on May 27, 2018. Under the terms of the transaction, strategic investor will acquire strategic investor of between 45% and 49% of the share capital of Saudi Steel Pipes Company. Tenaris Saudi Arabia Co. Ltd. entered into a definitive agreement to acquire 47.79% stake in Saudi Steel Pipes Company (SASE:1320) from Al Rabiah & Al Nassar Group and minority shareholders for approximately SAR 540 million on September 25, 2018. Tenaris will acquire 24.4 million shares for SAR 22.2 per share. The transaction is subject to regulatory approvals, including approval by General Authority for Competition of Saudi Arabia and other customary conditions. The memorandum of understanding expires on August 31, 2018. As of August 29, 2018, memorandum of understanding was extended for one month which will end on September 30, 2018. The deal is expected to close in the first quarter of 2019. J.P. Morgan acted as financial advisor to Tenaris. Omar Rashid, Mansoor Al-Hagbani, Rizwan Butt, Mashael Al-Shebaiky and Jomana Al-Kathiri of Abuhimed AlSheikh AlHagbani Law Firm (AS&H) and Clifford Chance acted as legal advisors for Tenaris. Diego Parise and Diego Minerva of Mitrani, Caballero Rosso Alba Francia Ojám & Ruiz Moreno acted as legal advisors to Tenaris and Karim Nassar of Baker & McKenzie Limited acted as legal advisor to Saudi Steel Pipes Company. Omar Rashid of Clifford Chance LLP acted as legal advisor to Tenaris Saudi Arabia Limited.
Tenaris Saudi Arabia Co. Ltd. completed the acquisition of 47.79% stake in Saudi Steel Pipes Company (SASE:1320) from Al Rabiah & Al Nassar Group and minority shareholders for approximately SAR 530 million on January 21, 2019. Tenaris and Rabiah & Nassar Group have agreed a reduction in the purchase price payable to Rabiah & Nassar Group in consideration for the waiver of certain agreed conditions such that the price payable to Rabiah & Nassar Group is approximately SAR 21.648 per share whereas the purchase price payable to the other sellers remains unchanged at SAR 22.20 per share. Upon the closing of the transaction, four Tenaris’s nominees were appointed as new members of SSP’s board of Directors. In addition, SSP’s board of Directors appointed Mariano Armengol, a senior executive with Tenaris, as Managing Director and Chief Executive Officer of SSP.
Saudi Steel Pipes Co SJSC is a Saudi Arabia-based company, which is engaged in the steel pipes manufacturing sector in the Middle East and North Africa region. The Company operates through two segments: Steel Pipe Segment includes manufacturing of welded steel pipes by high frequency induction welding and galvanizing, coating, threading and bending of the pipes used in oil and gas, water and construction sectors, as well as Process Equipment Segment, which includes design, manufacture, assemble and maintain heavy process equipment for the utilization of oil and gas, power generation, desalination, mining, solar energy and offshore plants. Its product range includes black and galvanized steel pipes, ERW/HFI galvanized and threaded steel pipes, seamless pipes, pipes with three-layer external coating by polyethylene and polypropylene in different diameters, pipes with epoxy coating inside, bended pipes in different diameters, space frame and submerged arc welded pipes.
Tenaris Saudi Arabia Co. Ltd. completed the acquisition of 47.79% stake in Saudi Steel Pipes Company from Al Rabiah & Al Nassar Group and minority shareholders for approximately SAR 530 million.
SAUDI STEEL PIPES COMPANY 
