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Alhokair acquires Innovative Union Company for SAR 340m

Alhokair acquires Innovative Union Company for SAR 340m
The transaction’s total cost amounted to SAR 340 million
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Riyadh – Mubasher: Fawaz Abdulaziz Al Hokair Company (Alhokair) has signed a purchase agreement under which it will acquire 100% of the share capital of Innovative Union Company, owned by Food and Entertainment Company.

The transaction’s total cost amounted to SAR 340 million, according to Alhokair’s statement to the Saudi Stock Exchange (Tadawul) on Monday.

Alhokair will settle the cost by way of exchange of some non-core receivables as reported on its balance sheet as at end of March 2019 with Food and Entertainment Company.

The Saudi-based firm noted that the agreement is subject to a number of conditions precedent, which must be satisfied on or before 31 December, including the transfer of a number of assets, employees, rights relating to a number of F&B trademarks as well as the transfer of shares in certain companies owned by Food and Entertainment Company.

However, the transaction is expected to generate additional value for Alhokair’s shareholders.

The deal includes a number of strategic benefits, are:

  1. Compliance with the company's new strategy to expand the food sector
  2. Increase the scope of operations by adding 10 international brands and more than 200 branches around the Kingdom
  3. Create strong growth potential for the company with the opening of 80 new branches during the next five years
  4. Improve the capital structure of the company through the acquisition of debt-free assets

It is worth noting that Alhokair has appointed Swicorp as financial advisor to the acquisition transaction.

It also hired Turkistani & Alabbad Law Firm as legal advisers, PWC as financial due diligence advisers, and Advention Business Partners market due diligence advisers.