Qassim Cement Company (SASE:3040) signed a non-binding memorandum of understanding to acquire Hail Cement Company (SASE:3001) for SAR 1.42 billion on September 25, 2022. As of December 24, 2023, Qassim Cement Company (SASE:3040) entry into a binding implementation agreement to acquire Hail Cement Company (SASE:3001) for SAR 1.3 billion. As per the terms, Qassim Cement will issue about 18.92 million shares in favor of Hail Cement's shareholders. Hail Cement's shareholders will receive 0.1933 newly issued shares in Qassim Cement for every share they own in the Hail Cement. The final exchange ratio will be set out in the definitive agreements of the Proposed Transaction. As of December 24, 2023, Hail Cement's shareholders will receive 0.21 newly issued shares in Qassim Cement for every share they own in the Hail Cement. Upon Transaction completion, QCC?s existing shareholders will own 81.4% of QCC after the capital increase, and HCC?s shareholders will own 18.6% of QCC after the capital increase. The Proposed Transaction is subject to the regulatory approvals, including approvals from the competent authorities and the approval of the extraordinary general assembly of each company and Subject to the satisfactory completion of financial evaluation of the Proposed Transaction and the results of the relevant due diligence exercise. HSBC Saudi Arabia Limited acted as a financial advisor and Khoshaim & Associates acted as a legal advisor to Qassim Cement Company. PricewaterhouseCoopers Public Accountants acted asFinancial Due Diligence Advisor , KPMG Professional Services acted as auditor to QCC.

Qassim Cement Company (SASE:3040) completed the acquisition of Hail Cement Company (SASE:3001) on June 12, 2024. QCC is pleased to announce the finalization of other complementary steps of the deposit of the Consideration Shares to HCC?s entitled shareholders and the listing of the Consideration Shares. QCC will announce, at a later time, the deposit of the proceeds of the fraction shares resulting from the Transaction to HCC?s entitled shareholders, as set out in the Offer Document and Shareholders? Circular.