FIPCO signs MoU to fully acquire Bina Holding

Logo of Filling and Packing Materials Manufacturing Co. (FIPCO)

Filling and Packing Materials Manufacturing Co. (FIPCO) signed a non-binding memorandum of understanding (MoU) with Bina Holding, under which both parties agreed to begin discussions for FIPCO’s potential acquisition of 100% equity interest in Bina.

In a statement to Tadawul, FIPCO said the MoU became effective upon signing and will remain in force for 180 days, subject to renewal by mutual agreement.

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The MoU aims to reach a final agreement on FIPCO’s full acquisition of Bina, following discussions of preliminary mutual rights and obligations related to the proposed transaction. It also allows for financial and legal due diligence and the valuation of Bina’s equity.

The MoU outlines a general framework for the negotiation process and sets the obligations of each party in working toward a definitive agreement.

It also includes customary provisions on confidentiality, exclusivity, and restrictions on certain material actions during the negotiation period.

Completion of the transaction remains subject to several conditions, including obtaining necessary regulatory approvals in accordance with applicable laws and regulations.

FIPCO confirmed it will undertake all required regulatory procedures related to related-party transactions, as stipulated by relevant laws.

The transaction’s execution is contingent upon the completion of financial and legal due diligence and final negotiations on the terms of a binding agreement. FIPCO will appoint an authorized financial advisor to oversee the due diligence process.

The company noted that a related party is involved, as FIPCO Chairman Ahmed Abdulatif Albarrak also serves as CEO of Bina.

FIPCO added that any material developments will be announced in due course.