SVCP inks non-binding MoU to acquire SLF

Logo of Saudi Vitrified Clay Pipes Co. (SVCP)

Saudi Vitrified Clay Pipes Co. (SVCP) signed today, Dec. 3, a non-binding memorandum of understanding (MoU) with the owners of Saudi Land Factory for Cement Products (SLF) to acquire a full stake in the company either for cash, shares, or both.

The equity rights of SLF were valued at SAR 26 million, subject to reduction if current owners withdraw funds, decreasing the value by the withdrawn amount, the company said in a Tadawul statement.

The MoU will last for 90 days for due diligence and binding share purchase agreement negotiations, including appointing advisors and negotiating the agreement's signing.

The acquisition seeks to expand the company's products and markets with concrete pipes, manhole chambers, and box culverts, with no related parties involved, SVCP explained.

The company requires final approval from its board and relevant authorities and will announce any material developments in this regard.