Al Rasheed inks preliminary MoU to acquire stake in Taif Shipping

Al Rasheed says the MoU is valid for 90 days and could be extended by written agreement between both parties

Mohammed Hadi Al Rasheed and Partners Co. (Al Rasheed) signed today, Oct. 20, a preliminary, non-binding memorandum of understanding (MoU) with Taif Shipping Co. (a limited liability company) to invest in it.

In a statement to Tadawul, Al Rasheed said the investment shall take place through acquiring a stake in Taif Shipping, which engages in services related to oil and gas extraction, transportation, and blending of silica sand and chemicals used in oil and gas extraction operations.

The MoU is aimed at defining the framework of understanding in the preliminary mutual obligations and rights between both parties. It covers conducting the necessary financial, legal, and technical due diligence, in addition to determining the investment ratio and the financial consideration for the transaction.

Several standard provisions that govern confidentiality of information and the mechanism of cooperation between the two parties during the study period are also entailed.

No related parties were involved in the deal, and no current financial impact was identified, the company stated, noting that any updates in this regard will be disclosed in due course.

This preliminary MoU is valid for 90 days and may be extended by written agreement between both parties, the statement added.