Al-Khaleej Training signs MoU to buy 60% of Al-Raqi Schools for SAR 12.8 mln

Al-Khaleej Training and Education Co. signed, today, Nov. 24, a binding 30-day memorandum of understanding (MoU) with the shareholders of Al-Raqi National Schools Co. to acquire 60% of the latter at SAR 12.82 million, according to a bourse statement.

The deal is conditional on completing the legal due diligence, as well as signing the sale and purchase agreement.

In addition, the agreed acquisition price will be paid in cash in two instalments, the first amount will be paid at SAR 7.05 million upon signing the purchase agreement. The remaining will be paid within two years pending the achievement of certain targets.

The two parties also agreed on expanding the girls and boys’ complexes, at the expected value of SAR 36.5 million, the statement said, adding that the project will be 60%-financed by the buyer and 40% by the seller.

The deal does not include any related parties, and the relevant financial impact will be determined when the due diligence is complete.

The company will announce any material developments in due course.