Bawan signs deal to sell entire stake in Bina Holding for SAR 76.7 mln

Logo of Bawan Co.

Bawan Co. signed an agreement on Sept. 21 to sell its entire ownership in Bina Holding for Industrial Investments Co., Bawan’s concrete industries segment, to Ahmad Muhammad Al-Osaimi for a total value of SAR 76.7 million, according to a statement to Tadawul. 

Bawan holds 56.75% of Bina Holding's capital, amounting to SAR 5 million. 

As of Aug. 1, the sale payment will be made in 24 equal monthly installments, with any unpaid amounts subject to applicable interest rates. 

The parties agreed that the ownership would be sold based on the company's audited financial statements on June 30, 2023, with an accounting effective date of July 1, 2023. 

The book value of Bawan’s share in Bina Holding amounts to SAR 52 million, and the deal will result in a capital gain of approximately SAR 3 million, in addition to the financial interest income calculated during the repayment period. 

This will accordingly boost Bawan’s financial position, as the proceeds will be invested in any available investment opportunity that aligns with Bawan's strategy in the coming period. 

The deal terms includethe sale of the ownership to the buyer and the latter’s approval to buy the stake, including the related current or future liabilities, the company said, adding that the deal is subject to regulatory approvals. 

The parties agreed that the buyer would mortgage the stake subject to sale in favor of Bawan and register the mortgage at the competent government agency as a guarantee in favor of the seller.  

The buyer, upon the date of signing, will provide a promissory note for the remaining amount of payment. 

The concrete industries segment, Bawan’s least owned compared to other business divisions, has no material impact on Bawan’s strategic plans and future expansions. 

On the date of signing the agreement, the total amount paid by the buyer reached SAR 7 million.  

The following table shows the concrete industries segment’s revenue and profit/loss over last three years: 

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