Kingdom Investment and Development Co., a subsidiary of Kingdom Holding Co. signed a non-binding memorandum of understanding (MoU) with Ataa Educational Company.
As per the MoU, Ataa Educational will acquire Kingdom Investment's 92.1% stake in Kingdom Schools, the owner of Kingdom Educational Schools in Riyadh.
The transaction will be concluded through stock swapping in Ataa Educational along with cash.
The two companies said in separate statements to Tadawul that the involved parties agreed to reach an initial value of the transaction before starting the due diligence study.
The MoU is valid for a renewable 120 days from the signing date of Nov. 28, 2019.
The company said it will make announcements regarding the progress of the transaction, which will be subject to all internal and regulatory approvals in case the parties involved reach a deal.
The transaction is part of KHC’s expansion strategy in the educational sector in the Kingdom, the statement added.
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