Riyadh – Mubasher: Arabian Contracting Services Company (Al Arabia) has entered into a purchase agreement to acquire Faden Media’s entire shares at a total value of SAR 1.05 billion.

Al Arabia will pay 70% of the transaction value upon completing the deal, while the remaining 30% will be paid on 31 March 2023, according to a bourse filing.

The acquisition comes in line with Al Arabia’s expansion plans to strengthen its position and boost market share through profitable partnerships locally and regionally.

Subject to regulatory approvals, the agreement will be funded by bank loans in addition to the Tadawul-listed firm’s own financial resources.

Al Arabia noted that the agreement’s financial impact cannot be determined in the meantime, but expected that it will start reflecting once completing the transaction and transferring the ownership.

Established in 2006 and has its headquarters in Riyadh, Faden Media is owned by Prince Abdulaziz bin Mashhor bin Mosaad bin Abdulaziz Al Saud with a capital of SAR 25 million. The firm logged net profits of SAR 11.10 million in the first quarter (Q1) of 2022, whereas its revenues reached SAR 39.10 million.

During the first half (H1) of 2022, Al Arabia reported a 62.51% year-on-year (YoY) leap in net profit after Zakat and tax to SAR 127.68 million from SAR 78.56 million. Meanwhile, the Saudi company is set to distribute cash dividends worth SAR 95 million for H1-22 on 19 October.