PIF inks MoU to buy new shares in MEPCO

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) signed, on May 6, a non-binding memorandum of understanding (MoU) with the Public Investment Fund (PIF), under which the latter is set to subscribe to MEPCO’s newly issued shares, according to a statement to Tadawul. 

The Kingdom’s sovereign fund will subscribe to a significant minority stake in MEPCO at SAR 31.50 per share.

The MoU shall expire on July 31, 2023, or upon concluding a legally binding subscription agreement between MEPCO and the PIF, whichever is earlier.

MEPCO hired SNB Capital, while the Kingdom’s sovereign fund authorized GIB Capital to advise on the deal.

The proposed subscription deal will be subject to the approvals of the Capital Market Authority (CMA) and other regulatory approvals.

Additionally, the terms and conditions of the subscription agreement will be subject to regulatory approvals and the approval of MEPCO's extraordinary general meeting (EGM).

The MoU included no related parties.

MEPCO said it will announce any material developments in relation to the proposed transaction as per the applicable law and regulations.