SARCO inks 2 MoUs to acquire stakes in 2 firms

Logo of Saudi Arabia Refineries Co. (SARCO)

Saudi Arabia Refineries Co. (SARCO) signed two non-binding memoranda of understanding (MoUs) to acquire entire stakes in German Saudi Industrial Co. (GESICO) and Golden Compass Mining Services Co.

In two separate statements to Tadawul, the company said the MoUs involve share swap deals for shares held by shareholders of both GESICO and Golden Compass. These deals entail issuing new shares through a capital increase as part of the proposed deals.

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The company indicated that initial valuations for the proposed deals were agreed upon by the parties to both MoUs, with final values to be determined following necessary studies and due diligence.

Effective from their signing date, the MoUs remain valid for 90 days unless otherwise agreed upon in writing.

The MoUs have no financial impact and involve no related parties, the statement added.

The announcement does not signify final agreement on the proposed deals, and any updates will be disclosed in due course.