The Saudi Public Investment Fund (PIF) has signed a binding agreement to acquire a 23.08% stake in Jeddah-based Middle East Paper Company (MEPCO) for around 630 million riyals (approx. $168 million). The deal will see MEPCO increase its capital by up to 866.7 million riyals with the suspension of the priority right.
The PIF will become MEPCO’s largest shareholder, subscribing to all new shares at a price of 31.50 riyals per share. The capital increase is still subject to obtaining approvals from the Capital Market Authority (CMA) and Tadawul, besides the company’s general assembly, in addition to the necessary internal approvals for fund.
The acquisition is part of the PIF’s strategy to invest in strategic sectors of the Saudi economy, including manufacturing and industry. MEPCO is a leading paper manufacturer in Saudi Arabia, with a production capacity of over 500,000 tons per year. The acquisition will give the PIF a foothold in the growing Saudi paper market and help to support the country’s economic diversification goals.
