AlKhaleej Training likely to complete stake acquisition in Al Awael Private Schools soon: Official

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AlKhaleej Training and Education Co. made great progress in the possible acquisition of a 70% equity in Al Awael Private Schools Co. Ltd, Khalid AlSuhaim, AlKhaleej Training's Senior Vice President of Education, told CNBC Arabia.

He added that the acquisition procedures are expected to be completed soon, noting that the procedures are likely to be carried out as scheduled, AlSuhaim said.

Commenting on financing amid a rise in interest rates, the official said the company will not resort to borrowing to finance its acquisition, especially as the SAR 200 million capital increase provided the necessary financing.

The training services provider spent nearly SAR 100 million from its capital hike proceeds to finance Al-Faisaliah National Schools and Al-Raqi Private Schools Co. in Riyadh, AlSuhaim said, adding that the acquisition of Al Awael Private Schools Co. and Al-Minhaj Private Schools Co. will be financed from the capital increase proceeds.

He indicated that the acquisitions accelerate growth and achievements.

In 2021, Alkhaleej Training increased its capital from SAR 450 million to SAR 650 million, through a SAR 200 million rights issue, according to data available with Argaam.

On Dec. 1, the company agreed with Riyadh-based Al Awael Gulf Holding Co. Ltd and its wholly-owned subsidiary, Al Awael Private Schools Co. Ltd, to extend the non-binding memorandum of understanding (MoU) for the potential acquisition of a 70% stake in Al Awael Private Schools.

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