Taiba signs SAR 328 mln MoU with Shuaa to buy firms owning Centro hotels in Saudi Arabia
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Taiba Investments Co. signed on May 26, 2021, a memorandum of understanding (MoU) with Shuaa Capital Saudi Arabia for the complete buyout of the two companies owning Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah - managed and operated by Rotana Hotel Management Corporation Ltd. – along with all assets and liabilities for SAR 328 million, including tax.
The company said in a bourse statement that the duration of the MoU is 60 days from the signing date, which can be extended.
The amount will be paid to Shuaa Capital Saudi Arabia as per the terms and conditions stipulated in the sales & purchase agreement (SPA) to be signed later for this purpose.
Taiba will finance the buyout transaction by acquiring loan from one of the financial institutions in addition to the company’s own resources.
The execution of the buyout transaction will be subject to financial, legal, statutory and operational due diligence activities.
The MoU is subjective to the approvals from the concerned governmental authorities.
The MoU is in line with Taiba’s strategic direction to focus on real estate investments and development and as part of its efforts to avail attractive investment opportunities in various cities of Saudi Arabia, that includes ownership of hospitality real estate projects to increase returns and maximize the value of investments owned by the shareholders.