Ash-Sharqiyah Development inks acquisition deal with Omar Saleh Babuker

Ash-Sharqiyah Development Co. signed on Monday a memorandum of understanding (MoU) with Omar Saleh Babuker to acquire two income-generating properties in Riyadh, as well as the Babuker supermarket chain, the firm said in a statement to Tadawul today.

To finance the acquisition, Ash-Sharqiyah Development will increase capital and issue new shares at the value of the assets to be bought in favor of Babuker, the statement said.

The one-year agreement is effective immediately, with an option to extend on both parties’ approval.

Under the terms of the MoU, both parties must approve the market value of the assets as well as the price of the shares to be issued by Ash-Sharqiyah Development, which will be determined after completing all financial and legal due diligence.

The target is to finalize the transaction before Oct. 30, 2018, pending regulatory and extraordinary general assembly approvals of the acquisition and capital hike.

Ash-Sharqiyah Development will reveal the deal’s expected financial impact and any other developments at a later time, it said.

The deal has no related parties, the statement said, adding that Ash-Sharqiyah Development has appointed Aldukheil Financial Group (AFG) as financial advisor for the transaction.