National Company for Learning & Education (NCLE) signed today, Sept. 3, a non-binding memorandum of understanding (MoU) with Aaj Real Estate Investments Company and Yamami Holdings Company, owners of Refan Company for Operation & Maintenance Limited (Refan Company).
On completion of the deal, Refan Company will be 100% owned by NCLE.
The MoU, which is valid for three months, sets the framework on the commitments and rights of each party. Additionally, the parties agreed that the purchase price will be SAR 946,000 for all shares of Refan Company.
Khalid Mohammed Al-Khudair, chairman of NCLE, has an indirect interest as a shareholder in Aaj Real Estate Investments and Yamami Holdings Company. On the other hand, Mohammed Khalid Al-Khudair, CEO of NCLE, has an indirect interest as a shareholder in Yamami Holdings Co.
Mohammed Al-Khudair Real Estate Development Company and Muhammed Ibrahim Al-Khudair Endowment, major shareholders of NCLE, have an indirect interest as major shareholders in Aaj Real Estate Investments Co.
The related parties collectively own 62.1% of the shares in NCLE and indirectly own 70.8% of the shares in Refan Company.
The deal when executed will result in the reduction of operational expenses related to the current operation and maintenance contract with Refan Company, which is a variable based on the number of workers that Refan Company provides to NCLE.
In addition, part of NCLE’s strategy is to establish a new segment specialized in providing educational supporting services, given the company’s expansion in opening new schools which include services for cleaning, maintenance, transportation, canteens and other educational supporting services.
NCLE has hired external consultants to carry out the legal and financial due diligence on Refan Company.
The impact on the financial results will start upon the closing of the proposed deal, the statement noted.
Any major update will be announced in due time, the statement noted.
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