Sadirat inks MoU to acquire Entaj Industrial Services’ subsidiary

Logo of Saudi Industrial Export Co. (Sadirat) 

Saudi Industrial Export Co. (Sadirat) signed today, Nov. 27, a non-binding memorandum of understanding (MoU) with Entaj Industrial Services Co., a closed joint-stock company, with the aim of discussing its acquisition of a stake or all of the capital of Entaj Industrial Services Co.’s subsidiary Advanced Energy Trading and Contracting Co. (a single-person company), according to a statement to Tadawul.

This MoU came into effect from the date of its signing, running for six months. This period may be extended or renewed for a similar period or more by mutual agreement, the company added.

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It also indicated that the MoU entails several customary provisions that regulate the confidentiality of information exchanged between the two parties. The implementation of the potential acquisition is subject to the two companies agreeing on a final binding agreement that sets out the terms and conditions of the deal.

These terms will include obtaining all regulatory approvals for the deal and related matters. Accordingly, the conclusion of the MoU does not necessarily mean that the two parties will reach a final and binding agreement regarding the potential acquisition or its implementation.

The conclusion of the proposed transaction is subject to the completion of the due diligence process and the subsequent talks of the signing of a binding agreement between the two parties.

In any case, the completion of the potential transaction will be subject to several conditions, including obtaining the necessary regulatory approvals, in accordance with the relevant laws and regulations.

No financial advisor has been appointed at this stage and a specialist advisor will be appointed to complete the due diligence process. Any material developments in relation to the final acquisition agreement will be announced in due course.

The company also noted that there are no related parties to the deal.