Dallah signs MoU to buy Maharah unit’s stake in Care Shield Holding

Dallah Healthcare Co. signed a non-binding memorandum of understanding (MoU) with Growth Avenue Investment Co., wholly owned by Maharah Human Resources Co., to purchase Growth Avenue’s entire 41.36% in Care Shield Holding Co.

Dallah will own 100% of Care Shield Holding's share capital upon completion, Dallah and Maharah said in separate statements to Tadawul.

They clarified that the MoU is a preliminary, non-binding agreement related to the potential transaction, under which both parties agreed to negotiate and reach a final, binding agreement, which will enable Dallah Healthcare to conduct due diligence on Growth Avenue.

The MoU also includes meeting regulatory provisions, such as confidentiality and other clauses.

The MoU was signed on Oct. 26 and will remain effective until Nov. 30, 2025.

There are no related parties in the transaction, the companies stated.

Care Shield Holding, 41.36% owned by Growth Avenue and 58.64% owned by Dallah Healthcare, is not a direct party to the MoU.

There is no financial impact at present, the statements said, adding that Growth Avenue will negotiate the final binding terms of the share purchase agreement should Dallah Healthcare complete its due diligence process.

Thereafter, the companies will proceed to obtain any necessary regulatory approvals.

Dallah Healthcare appointed Ziad Samir Khoshaim Law Firm (Khoshaim & Associates) as its legal advisor for the potential transaction. However, neither party has appointed any financial advisor.

The MoU is non-binding, and the potential transaction remains subject to the parties reaching a final binding agreement.

There is no assurance that such final agreements will be signed or that the transaction will be completed, the statements clarified.

Any material developments will be revealed in due course.