Ghida Alsultan clarifies details of Simple Burger planned takeover

Logo of Ghida Alsultan for Fast Food Co.

Ghida Alsultan For Fast Food Co. for Fast Food Co. disclosed, on Feb. 12, the parties to the planned transaction to acquire 100% of Simple Burger Establishment for Meal Services.

The buyer is Ghida Alsultan, while the seller is Yousef Aref Al-Mesbahi, owner of Simple Burger Establishment, according to a Tadawul filing.

Under the deal, the seller will fully cooperate with the company in operations and support for a period of three years from the date of acquisition in order to achieve targeted sales objectives.

The transaction also entails the transfer of assets, trade name, rights, and obligations from the seller to Ghida Alsultan.

A phased payment mechanism linked to financial performance will apply post-acquisition.

The transaction value will be paid in three installments, with a portion of the total consideration subject to conditions related to achieving specific sales and profitability levels compared to previous years.

However, part of the purchase price is contingent upon achieving agreed financial metrics, most notably Simple Burger delivering a minimum net profit-to-sales ratio during a specified fiscal year and achieving a minimum annual net profit.

The seller has acknowledged full disclosure of all financial and legal obligations, as well as any existing or potential claims. He remains liable for any undisclosed obligations or disputes prior to the sale completion, even if such matters arise subsequently.

According to Argaam’s data, Ghida Alsultan signed, on Feb. 9, an agreement to acquire 100% of Simple Burger Establishment, for SAR 23.8 million.