Taiba, Dur shareholders agree on merger

03/12/2023 Argaam
Logos of Taiba Investments Co. and Dur Hospitality Co.

Logos of Taiba Investments Co. and Dur Hospitality Co.


Shareholders of Dur Hospitality Co. and Taiba Investments Co. approved, on Nov. 30, the latter’s full acquisition of Dur’s issued shares.

 

Taiba shareholders approved a capital increase from SAR 1.6 billion to SAR 2.6 billion to acquire Dur’s 100 million shares under the agreement terms.

 

The capital will be raised through the issuance of a new share in Taiba for every share of Dur, as earlier stated in the shareholders’ circular.

 

Merger Details

Merger Method

Taiba to acquire 100% of Dur shares

Compensation Method

Issuing new shares for Dur shareholders

Swap Coefficient

Dur shareholders will receive one Taiba share for every share they hold in Dur

New Entity

Taiba Investments Co.

Dur After Merger

Dur will be delisted from Tadawul. The company will be wholly owned by Taiba

Taiba’s Capital Before Merger

SAR 1.6 bln

Taiba’s Capital After Merger

SAR 2.6 bln

Capital Increase

62.3%

Taiba’s Share Price as per Swap Coefficient

SAR29.50

Dur Share Price for Merger Purposes

SAR 29.50 (up 22.5% compared to its last closing price of SAR 24.08)

Dur Total Share Value for Merger Purposes

SAR 2.95 bln

Taiba Shareholders’ Share After Merger

61.6% of the merging company’s capital

Dur Shareholders’ Share After Merger

38.4% of the merging company’s capital

 

The deal was closed following the approval of the extraordinary general meetings (EGMs) of both companies, Dur said in a statement to Tadawul, adding that a trading halt will be imposed on its shares until the delisting procedures are completed. Dur will be fully owned by Taiba.

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