Logo of Fawaz Abdulaziz Alhokair Co.
Fawaz Abdulaziz Alhokair Co. announced that it signed today, Oct. 12, a non-binding letter of intent (LoI) with Newco Corporation on the potential sale of 66.67% of Billy Beez USA LLC.
According to a bourse statement, Billy Beez is 100% owned by Fawaz Alhokair’s wholly-owned subsidiary, Retail Group of America LLC.
The LoI focuses on the basic details of entering into a legal agreement and then reaching a final agreement whereby the buyer, Newco, acquires 66.67% of Billy Beez.
LoI is valid until Dec. 31, 2021, subject to renewal with the consent of both parties by written notice. Either party may also terminate it on written notice.
The statement asserted that there is no direct financial impact on Fawaz Alhokair as a result of signing the LoI.
The sale process will include a due diligence review that will determine the financial impact of this transaction on Fawaz Alhokair’s financial statements, it noted.
Retail Group operates in the entertainment sector and franchises Billy Beez, an indoor children's entertainment center, and currently operates 13 locations throughout the United States.
The potential purchaser, Newco, represents a group of experienced entertainment professionals in North America, Europe, and Southeast Asia.
The final agreement for the potential sale is projected to include a combination of cash and debt repayment of the target company, Billy Beez.
According to the statement, the potential sale is in line with Fawaz Alhokair’ strategy of exiting the non-core markets and focusing on diversifying its portfolio in the retail and food and beverage sectors.
Fawaz Alhokair aims to become the leading business entity, providing a modern and active lifestyle across Saudi Arabia and selected growth markets.
Any significant developments will be announced in due course, the statement said.
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