TALCO signs MoU to acquire Eastern Aluminum Extrusion Factory

TALCO will undertake feasibility studies to acquire Eastern Aluminum Extrusion Factory

Al Taiseer Group Talco Industrial Co. (TALCO) signed on Nov. 23 a preliminary, non-binding memorandum of understanding (MoU) with Eastern Aluminum Extrusion Factory, for the purpose of acquisition, according to a statement to Tadawul.

The MoU aims to outline the initial framework of mutual obligations and rights between both parties and complete feasibility studies, along with conducting financial and legal due-diligence reviews. It also covers several standard provisions governing information confidentiality.

The nine-month MoU is effective from the date of signing, and may be extended upon written agreement.

The relevant financial impact cannot be determined before a final agreement.

Any material developments will be disclosed in due course, the statement noted, adding that there are no related parties involved.