Al Muhaidib declines Retal offer for Ajdan stake

In a statement to Tadawul, Retal said Al Muhaidib preferred to retain its holding in Ajdan, describing it as a long-term strategic investment and citing confidence in the company’s prospects.

Retal added that it had also received a notice from Al Fozan Holding Co. regarding an offer by Sumou Global Investment to Al Fozan and Al Muhaidib to acquire their combined 5% stake in Ajdan for SAR 125 million in cash, implying a valuation of SAR 2.5 billion for the company.

The notice included a separate proposal for Ajdan to buy back shares held by Sumou.

Retal said Al Fozan had requested its approval of Sumou’s proposed transaction under the existing share-swap agreement between the two parties. It granted written approval on Feb. 22.

Upon completion of Sumou’s proposed deal and the main transaction, Retal’s stake in Ajdan would rise to 50%, the company said.

Full details of both transactions will be disclosed in a shareholders’ circular after obtaining regulatory approvals, it added.

According to Argaam data, Retal recently submitted an offer to Al Muhaidib to acquire 14.25 million Ajdan shares, representing 47.5% of its capital, in exchange for issuing 55 million new ordinary shares.