SACO signs MoU to buy logistics firm, closes Riyadh branch

28/10/2015 Argaam

Saudi Company for Hardware (SACO) has signed a memorandum of understanding (MoU) with the owners of Medscan Terminal Co., to acquire its transportation and logistics subsidiary, Medscan Terminal Co., it said in a statement to the Saudi bourse, Tadawul.

 

The MoU is for six months and is extendable on both parties’ agreement. The acquisition price will be determined after due diligence.

 

SACO has appointed Ernst & Young as a financial consultant for the acquisition.

 

 The company said although two of its board members have a relationship with Medscan Terminal through Abrar International Holding Co., there are no preferential terms in the MoU and all developments will be disclosed to the shareholders and approvals obtained.

 

In an unrelated statement, SACO said that on Oct. 26 it temporarily closed its Riyadh branch as instructed by the Riyadh municipality till certain license requirements are met.

 

The company said it was too early to determine the financial impact of the closure.

 

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