iOud estimates Thannah Trading acquisition value at SAR 59.5M

Logo of Intelligent Oud Company for Trading (iOud)

Intelligent Oud Co. (iOud) received official letters from all current shareholders of Thannah Trading Co. noting their preliminary acceptance of iOud’s offer to acquire their full ownership stakes.

Thannah current stakeholders include Afaq Food Fund (owning 99.99%) and an individual private shareholder (holding 0.01%).

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The proposed acquisition will be executed through a share swap, whereby iOud will issue approximately 1.17 million new shares in favor of Thannah’s shareholders, according to a statement to Tadawul.

The share swap valuation was determined using the volume weighted average price (vwap) method, a common approach for such transactions, calculated over the three-month period prior to signing the memorandum of understanding (from Feb. 9, 2025, to May 9, 2025), covering 60 trading days. Based on this method, the share price for the swap was set at SAR 50.83, bringing the total estimated value of the transaction to around SAR 59.5 million.

The company highlighted that the deal remains subject to regulatory procedures and necessary approvals from relevant authorities. The completion of the transaction depends on fulfilling all required conditions, including signing the final acquisition agreement.

Any material developments related to the transaction will be announced in due course, the company added.

In May, iOud signed a non-binding memorandum of understanding (MoU) with Afaq Food Fund, a closed-end investment fund managed by Afaq Capital Co, outlining the potential acquisition of 100% of the capital shares in Thannah through a share swap agreement, Argaam data showed.