Bawan inks MoU to buy 100% of Arnon Plastic

Bawan Co. on Wednesday signed a non-binding memorandum of understanding (MoU) with Al Fozan Holding Group to acquire 100 percent of Arnon Plastic Industries Co Ltd. for a total value of SAR 205 million, the company said in a bourse statement.

Arnon is a wholly-owned subsidiary of Al Fozan.

The preliminary agreement, which came as part of Bawan’s strategy to diversify its customer base and product mix, will remain valid for three months from the signing date.

Under the MoU, both parties will make the required financial and legal due diligence.

Bawan will duly disclose the related financial impact as well as any relevant updates, the statement added.

The deal is pending approval of Bawan’s extraordinary general assembly and the competent government authorities.