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Published on the same date

CMA Announces the Approval of Qassim Cement Co. request to increase its capital to acquire Hail Cement Co. through securities exchange offer and the approval of publication the offer timetable, and the offer document to the shareholders of Hail Cement Co.

The CMA announces the issuance of its resolution approving Qassim Cement Co. request to increase its capital from SAR 900,000,000 to SAR 1,105,590,000 by issuing 20,559,000 ordinary shares to acquire Hail Cement Co. through a securities exchange offer.

Qassim Cement Co. capital increase shareholder circular will be published within sufficient time before the Extraordinary General Assembly Meeting. The shareholder circular must include all relevant information that the shareholders need to know before making an informed decision when voting on the capital increase for the purpose described, including the increase in capital and risk factors.

The CMA resolution included the approval of the proposed offer timetable, as well as the approval of the publication of the offer document by Qassim Cement Co.to Hail Cement Co. shareholders through a securities exchange offer.

The offer document of Qassim Cement Co. will be published to Hail Cement Co. shareholders to acquire all their shares in Hail Cement Co. within sufficient time before the Extraordinary General Assembly Meeting of Hail Cement Co. The offer document must include all relevant information that the shareholders need to know before making an informed decision when voting on the offer, including the offer information and risk factors.​

If the shareholders of Qassim Cement Co. approved the capital increase, and the shareholders of Hail Cement Co. accepted the offer in their Extraordinary General Assembly Meetings, the new shares will be issued to Hail Cement Co. shareholders who are registered in the shareholders' registry at the Securities Depository Center Company and the shares of Hail Cement Co. will be delisted from the Saudi Stock Exchange after the acquire decision becomes effective.

A voting decision without reading the shareholders circular and the offer document carefully and reviewing its content may involve high risks. Therefore, the shareholders should carefully read the shareholders circular and the offer document to be able to reach a proper voting decision. If the shareholders circular and offer document prove difficult to understand, it is recommended to consult with an authorized financial advisor.

The CMA's approval should never be considered as an endorsement of the acquisition's feasibility. The CMA's approval of the application merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.