Al-Baha inks non-binding MoU to fully acquire Elegant Centers

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co. signed on May 23 a non-binding memorandum of understanding (MoU) with board member Meshal Mufti, the owner of the non-controlling equity shares of Elegant Centers Ltd. Co., which amount to 750,000 shares, or 13.04% of the capital of the company and its subsidiary, Ishraqa Regional for Real Estate Development & Investment Co., for the a potential acquisition.

In a statement to Tadawul, Al-Baha pointed out that the MoU is effective for 60 days as of the date of signing or the final agreement, whichever comes first, noting that it is subject to extension as per to a written consent between the two parties.

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Upon acquisition, Al-Baha’s ownership will become 100% of the capital of Elegant Centers instead of the current stake of 86.96%, the statement noted.

An understanding was reached between the two parties that in the event of a final agreement between them, it will pay the acquisition value within a period of one year from the date of transferring the shares, and the buyer has the right to make payment extensions.

The measures to be taken during the agreement term are relevant to evaluation works, due diligence examination, preliminary agreements between the parties, and determining the purchase value of the sold shares after completing the evaluation and agreements.

The deal is subject to the approvals of the relevant regulatory authorities and Al-Baha shareholders.

Al-Baha’s board member, Meshal Mufti, is a related party, the statement added.

Any substantial developments on the MoU or the proposed acquisition will be announced in due course.