Posted on 22 Jan 2019
Saudi Steel Pipe Company (SSP) has announced that international pipemaker Tenaris has acquired a major shareholding in the company. This was subsequently followed by the resignation of SSP’s chairman and other board members, and the subsequent election of a new chairman and board member replacements.
In a Saudi stock exchange posting on 21 January monitored by Kallanish, SSP announced that “… Tenaris Saudi Arabia Co. Ltd has successfully completed the acquisition of 47.79% of the shares in the company.” These were acquired from Rabiah & Nassar Group and a group of other shareholders through a private transaction, the posting detailed.
The price paid by Tenaris was SAR 21.648/share ($5.77).
“As part of its plans, Tenaris remains committed to the growth of the company and as a result of the transaction will expand its industrial presence in the Kingdom and the range of products it supplies to Saudi Aramco,” the statement continued. “Tenaris has no immediate plans to make any significant changes to the employee structure unless otherwise decided by the board of directors of SSP in due course,” SSP said.
Not long after this, SSP issued a further statement to the exchange confirming the resignation of board chairman Riyad Yousef Al-Rabiah and three other board members. A further bourse statement then announced the appointment of Ahmed Mubarak Al-Dabbasi as the new chair, with Tenaris executive Carlos Andres Ferreira as vice-chairman.
