Naseej inks MoU to fully acquire Etmam Arabia

Logo of Naseej International Trading Co.

Naseej International Trading Co. signed a non-binding memorandum of understanding (MoU) with Etmam Arabia Construction Co. to fully acquire the latter's shares, upon reaching a final agreement between the two parties, according to a statement to Tadawul.

The takeover will come in exchange for the issuance of new shares by Naseej according to the fair evaluation of Etmam Arabia’s shares, including their rights and obligations.

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The MoU will enter into force from the date of its signing for 180 days. It will be automatically renewed, unless either party is notified 30 days before the end of its term, according to the company.

Naseej highlighted that Etmam Arabia is committed to providing all required documents to all advisors, including the FDD and LDD advisors, besides others appointed by the second party.

A financial advisor has not been named yet at this stage. However, a specialized advisor will be appointed to complete the financial and legal due diligence, said Naseej, adding that any material developments regarding the final acquisition agreement will be announced in due course.

The company noted that the proposed transaction’s conclusion is subject to the completion of the financial and legal due diligence, before negotiating the signing of a binding agreement.

Naseej will appoint all advisors to complete the deal in the required manner and execute the contract in the proper way and within specified time.

The terms and conditions of the final binding agreement implies obtaining all the required regulatory approvals and the go-ahead of the company's extraordinary general meeting on the transaction and its related matters.

Therefore, the MoU’s execution does not mean the parties will reach a final and binding decision regarding the proposed transaction nor that it will be formally completed, according to the company.