Logo of Saudi Arabia Refineries Co. (SARCO)
Saudi Arabia Refineries Co. (SARCO) provided further clarity on the memorandum of understanding (MoU) pertaining to the acquisition of German Saudi Industrial Co. (GESICO) and Golden Compass Mining Services Co.
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In two separate statements to Tadawul, SARCO said the parties involved in the acquisition agreements upon a comprehensive framework, encompassing several key points. SARCO will acquire all shares of the two targeted companies by issuing new shares to their respective shareholders.
The proposed transaction is subject to specific conditions, including approval from the Capital Market Authority (CMA), approval from Tadawul, and shareholder consent, in addition to any conditions stipulated in the binding acquisition agreement.
Furthermore, SARCO will conduct essential due diligence studies on the target companies. Binding provisions were established regarding confidentiality of shared information, as well as terms governing exclusivity periods, non-solicitation, and other customary provisions typical in such MoUs.
SARCO also confirmed the appointment of AlJazira Capital as its financial advisor for these transactions, while no financial advisor was designated for the other parties involved.
The completion of the proposed transactions is subject to the fulfillment of financial, tax, and legal due diligence processes, and the parties will negotiate final terms to execute the binding acquisition agreement.
The company underscored the importance of obtaining official approvals and approval from an extraordinary general meeting (EGM) for the capital increase intended for the acquisitions.
According to data available on Argaam, SARCO signed two non-binding MoUs to acquire entire stakes in GESICO and Golden Compass.
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