Saudi Vitrified Clay Pipes Co. Announces the Execution of Memorandum of Understanding with Owners of Saudi Land Factory For Cement Products (SLF) to acquire all ownership shares in the company in exchange for a cash amount or by issuance shares or a combination of them
|Date of signing the Memorandum of Understanding
|2023-12-03 Corresponding to 1445-05-19
|Name of the Counterparty
|Owners of Saudi Land Factory For Cement Products (SLF)
|Name of Financial Advisor of Each Party
|The financial advisor will be hired in the next phase.
|Major Terms in the Memorandum
|It has been agreed to evaluate the equity of Saudi Land Factory For Cement Products (SLF) in the amount of SAR 26 million, and this value will be reduced in the event that the current owners of Saudi Land Factory For Cement Products (SLF) execute any withdrawals that reduce the company's equity, as this value will decrease by the same amount as what was withdrawn. Saudi Clay Pipe Production Company will appoint due diligence consultants and then negotiate a binding agreement for the purchase of the shares.
|Actions to be Taken by the Company during the Memorandum’s Duration
|Conducting due diligence and negotiating a binding quota purchase agreement.
|Final approval is required for the Board of Directors of the Saudi Vitrified Clay Pipes Co. and the relevant government agencies
|The acquisition aims to diversify the Saudi Vitrified Clay Pipe Co. products base and markets by adding concrete pipe , Concrete manholes and concrete box culvert.
The MOU is non-binding for Saudi Vitrified Clay Pipe Co and any material developments in relation to the proposed MOU or acquisition will be announced in due course.
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