Asharqiyah Development announces that a Memorandum of Understanding (MOU) was signed on Monday the 9th of April 2018 with Mr. Omar Saleh Babuker to acquire two fully owned income-generating real estate properties in Riyadh in addition to Babuker Supermarket chain by increasing the Company's capital and issuing shares with the value of the assets to be acquired in favor of Mr. Omar Saleh Babuker.
The MOU covers the following main items:
- The terms of the Memorandum expires after one year from the signature date with the option to extend by mutual agreement.
-The memorandum shall expire on the date of signing the final agreements of the transaction or the end of the period of the memorandum unless extended by agreement of both parties (whichever occurs first).
-The market value of the assets to be acquired will be determined as well as the share price of Asharqiyah Development under which the shares will be issued and agreed upon between the two parties after completion of all financial and legal due diligence (FDD & LDD).
-The target is to complete the transaction before 30/10/2018 after obtaining the approvals of the official bodies and the Extraordinary General Assembly on the acquisition and the increase Asharqiyah share capital. The company will announce the financial impact of the transaction after completing all the legal procedures in accordance with the policies and procedures.
-The Company asserts that there are no related parties in the transaction and any future significant developments relating to the transaction will be announced.
Finally, Asharqiyah Development has appointed Aldukheil Financial Group (AFG) as the financial advisor for the transaction