| Element List | Explanation |
|---|---|
| Introduction | With reference to Molan Steel Company’s announcement dated 06/10/2025 regarding the lawsuit filed against Yara International Limited to invalidate the agreement for the purchase of the branch registry registered under Miyar International Industry, with a total value of SAR 34,880,970 the Company announces that it has signed a final and comprehensive settlement agreement with Yara International Limited on 29/03/2026, resulting in the full resolution of the dispute between the two parties and the settlement of all related claims and procedures, while maintaining the agreement in force and agreeing on a new payment schedule for there remaining amount. |
| Previous Announcement | The commercial lawsuit filed against Yara International Limited. |
| Date of Previous Announcement on Saudi Exchange’s Website | 2025-10-06 Corresponding to 1447-04-14 |
| Hyperlink to the Previous Announcement on the Saudi Exchange Website | Click Here |
| Latest Developments Of The Announced Event | On March 29, 2026, a final and comprehensive settlement agreement was signed between Molan Steel Company and Yara International Ltd., bringing a complete end to the ongoing dispute between the two parties regarding the contract for the purchase of the subsidiary commercial registration registered in the name of Mayar International for Industry. The agreement entailed: the withdrawal of the request to invalidate the contract, thereby maintaining its validity and enforceability; an agreement to complete the execution of the contract and settle the remaining balance of its value according to a new payment schedule concluding on February 28, 2027, the immediate lifting of existing enforcement measures and the release of restrictions on the Company’s bank accounts, the termination of the pending lawsuit related to the request for contract invalidation, and the settlement of all claims and proceedings between the parties in accordance with the terms set forth in the agreement. The conclusion of this settlement reflects the Company’s approach to managing disputes efficiently, as well as its commitment to maximizing the return on administrative resources by redirecting them toward strategic growth initiatives. Management carefully evaluated the trajectory of the dispute and concluded that the terms of the achieved settlement offer greater value than continuing with judicial proceedings—particularly in light of the direct benefits secured under the agreement. These benefits include: the lifting of existing enforcement measures, the release of restrictions on bank accounts, the rescheduling of financial obligations, and the enablement of the Company to pursue the collection of its contractual receivables—all of which serve to bolster its financial and operational stability and allow the management team to dedicate its full attention to executing growth strategies. |
| Reasons For The Delay on The Date of The Event Previously Announced | Not applicable |
| The costs associated with the event, and if they have changed or not with indication of the reasons. | Not applicable |
| Delay consequences on the Company’s financial results | Not applicable |
