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Logo of United Wire Factories Co. (Aslak)
United Wire Factories Co. (Aslak) signed, on Feb. 20, a non-binding memorandum of understanding (MoU) with A-1 Fence DMCC Co., UAE, for the potential stake acquisition in A-1 Fence Arabia for Industry, a Dammam-based foreign limited liability co.,
The MoU aims to understand the initial mutual obligations and rights between the parties regarding the acquisition process to complete the deal under the agreed proposals and agreements, the company said in a bourse filing today, Feb. 21.
The companies also decided to determine the value of the final deal after completing the evaluation and due diligence audit.
The MoU will be effective from the date of signing and valid for 90 days, subject to renewal on approval from both parties.
The financial impact will be determined after the final evaluation is completed, the statement noted. There are no related parties.
This potential deal comes as a strategic direction for Aslak as it aims to diversify sources of income and maximize its profitability through various investments.
Any significant developments will be announced in due course.
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