Logo of Arab Sea Information Systems Co.
Arab Sea Information Systems Co. signed, today, March 13, a non-binding memorandum of understanding (MoU) with board member, Mohammed Al-Sehaibani (a related party), to acquire a real estate asset owned by him. In return, Arab Sea will issue shares for Al-Sehaibani in the company, according to a statement to Tadawul.
The 12-month MoU will come into effect from the date of signing. The MoU will be automatically renewable, unless one of the two parties sends a written notice to suspend it at least ten business days before the MoU expiry date, or if both parties enter into a binding MoU.
Both parties agreed on appointing Falcom Financial Services as financial advisor on the deal.
The final value of the real estate asset, Arab Sea’s stock price, and the share swap ratio will be finally agreed upon after meeting the required approvals of both parties, including the approvals of the Capital Market Authority (CMA) and Arab Sea’s extraordinary general meeting (EGM) of Arab Sea, and the signing of a binding agreement in this regard.
Arab Sea added that the required financial or legal due diligence process will be finalized through the MoU term, as well as the required tax assessment. The company will use part of the target asset, which consist of 23 floors, to be its headquarters, as it is located north of Riyadh in Al-Sahafa neighborhood.
The MoU is subject to the approval of official authorities and the vote of Arab EGM on the acquisition and capital increase. The relevant financial impact of the deal will be disclosed when all legal procedures are completed, pursuant to the applicable regulations.
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