Taiba Investments Co. signed a binding implementation agreement on April 8 to make an offer to acquire 100% of Dur Hospitality Co.’s shares in exchange for issuing new shares in Taiba.
In a statement to Tadawul, the companies pointed out that the deal was concluded in compliance with Article (26) of the Merger and Acquisition Regulations, and in accordance with the Rules on Offering Securities and Continuing Obligations issued by the Board of the Capital Market Authority (CMA).
Taiba announced its intention to submit an offer under the acquisition agreement pursuant to the terms and conditions set forth in the implementation agreement.
In December 2022, Taiba and Dur signed a memorandum of understanding on a possible securities exchange deal, including a non-binding agreement on structuring and share swap coefficient, Argaam earlier reported.
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Merger Details |
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Latest Development |
Signing binding merger agreement |
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Merger Method |
Taiba to acquire 100% of Dur shares |
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Compensation Method |
Issuing new shares for Dur shareholders |
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Swap Coefficient |
Dur shareholders will receive one Taiba share for every share they hold in Dur |
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New Entity |
Taiba Investments Co. |
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Dur After Merger |
Its shares will be delisted from Tadawul and it will be wholly owned by Taiba |
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Taiba’s Capital Before Merger |
SAR 1.6 bln |
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Taiba’s Capital After Merger |
SAR 2.6 bln |
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Increase Rate |
62.3% |
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Taiba’s Share Price as per Swap Coefficient |
SAR29.50 |
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Dur Share Price for Merger Purposes |
SAR 29.50 (up 22.5% compared to its last closing price of SAR 24.08) |
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Dur Total Share Value for Merger Purposes |
SAR 2.95 bln |
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Taiba Shareholders’ Share After Merger |
61.6% of the merging company’s capital |
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Dur Shareholders’ Share After Merger |
38.4% of the merging company’s capital |
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