UAE’s Tabreed enters deal to acquire additional stake in Saudi Tabreed for SAR 55 mln

Acquisition Details

Company

National Central Cooling Co. (Tabreed)

Deal

Acquisition of additional shares in Saudi Tabreed from Al Mutlaq Group for Industrial Investments LLC for SAR 55 mln (AED 53.7 mln).

Type of target asset and description of activity

Consolidate Tabreed’s existing shareholding in Saudi Tabreed, at 21.8%. Simultaneously, Public Investment Fund (PIF) bought 30% stake in Saudi Tabreed in a private placement, subject to completion procedures as per the agreement.

Determine value of the asset acquisition cost and percentage to the capital of the listed company in case of disposal, mortgage or leasing

Capital investment of SAR 54.6 mln (AED 53.6 mln)/ AED 2.845 BN = 2%

Value of acquisition deal

SAR 55 mln (AED 53.7 mln)

Reasons for acquisition and expected impact on the company, its operations, and shareholders

Consolidate Tabreed’s existing shareholding in Saudi Tabreed, at 21.8%. Simultaneously, Public Investment Fund (PIF) bought 30% stake in Saudi Tabreed in a private placement, subject to completion procedures as per the agreement.

This transaction is unlikely to have a material impact on Tabreed’s existing operations or the rights of its shareholders.

Transaction parties

Tabreed and Al Mutlaq Group

Related parties, if any

Not Applicable

Date of signing

Dec. 14, 2022

Date of execution

Dec. 14, 2022

Expected closure date

Dec. 21, 2022

If the listed company is the acquiring party, the following must be fulfilled:

1- Explain how to finance acquisition or lease transaction.

2- Determine the sources of financing the transaction in the case of acquisition or leasing, with clarification of the payment mechanism, if it will be in part or all funded through banks.

3- Determine the date or dates of payment of the amounts owed by the listed company from the acquisition or lease transaction.

1. Financed from company reserves.

2. Not Applicable

3. Not Applicable

Expected financial impact on the listed company’s results and financial position

The transaction will not materially impact the results or financial position of the company (less than 1% impact on both).

The fiscal period or quarter in which the transaction’s impact is expected to show

Q4 2022

Summary of the terms and conditions of the transaction, the rights and obligations of the listed company and its shareholders, and the procedures involved in case any party fails to fulfill the obligations thereof

Acquisition of additional shares in Saudi Tabreed from Al Mutlaq Group for SAR 55 mln.