Al Arabia board approves acquisition of Faden Media for SAR 1.05 bln

Logo of Arabian Contracting Services Co. (Al Arabia)

Arabian Contracting Services Co.’s (Al Arabia) board of directors approved on Oct. 11 a purchase agreement to fully acquire Faden Media, for SAR 1.05 billion, according to a bourse statement

After completing the acquisition, Faden Media will be a fully-owned subsidiary of Al Arabia.

The buyer will pay 70% of the transaction value upon completion of the agreement and the remaining 30% will be paid on March 31, 2023.

The deal will be financed from bank loans and Al Arabia’s own resources.

The completion of the transaction is subject to a few preconditions mentioned in the purchase agreement, including obtaining approvals from the relevant government authorities, such as the General Authority for Competition (GAC).

Headquartered in Riyadh, Faden Media was incorporated in 2006, and has successfully established business across digital advertising media on buildings and retail stores.

This deal represents an extension of Al Arabia’s strategy through entering profitable alliances and partnerships locally and regionally, with the aim of boosting the company’s position and maintaining its leading position. In addition, the acquisition aims to enhance the firm’s market share by taking advantage of its competitive advantages and acquiring a larger share of the outdoor advertising market, whether roadside advertising or indoor ads.

The financial impact of the agreement cannot be determined currently, and is expected to be reflected upon completion of the transaction and transfer of the ownership, the statement said

The signing of this agreement does not mean it is finalized, as the deal requires approvals from the relevant regulatory authorities.

Al Arabia will announce any further material developments in due course.

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