Etihad Atheeb Company (GO) announces that it has signed a binding memorandum of understanding to acquire a 51% share of the capital in EJAD TECH company
| Element List | Explanation |
|---|---|
| Introduction | - Etihad Atheeb Company (GO) announces the signing of a binding memorandum of understanding to acquire a 51% ownership stake in Ijad Al-Taqnia Information Technology Company, at a value of 86.7 million riyals (eighty-six million and seven hundred thousand Saudi riyals)
- EJAD TECH company activity : A leading company in providing information technology services and consultations, digital transformation, and technology localization.
- Expected impact of the deal on the company and its operations: The financial impact of this acquisition is expected to be positive, contributing to an increase in the company’s total revenues and profits. Further details on the financial impact will be disclosed at a later stage, upon completion of the necessary regulatory approvals and finalization of the deal.
- Reasons for the deal: The acquisition aligns with Etihad Atheeb’s new strategy, aiming to expand its business base through acquisitions and take advantage of growth opportunities by entering a new sector, in line with the company’s vision and goals
- Deal Financing Method: The deal will be financed through Etihad Atheeb’s resources and cash flows |
| Date of signing the Memorandum of Understanding | 2024-09-14 Corresponding to 1446-03-11 |
| Memorandum Duration | Four months |
| Name of the Counterparty | EJAD TECH company |
| Name of Financial Advisor of Each Party | - Mekyal Financial Technologies Company has been appointed as a financial advisor to Etihad Atheeb Company.
- ValuHub Company has been appointed as a financial advisor to EJAD TECH company. |
| Major Terms in the Memorandum | Completion of the Transaction is subject to a number of conditions contained in the Acquisition Agreement (“Agreement”).
- The founder will continue with the company for a period of no less than five years from the date of acquisition.
- Non-competition by the founder or his relatives during the five-year period and two years thereafter.
- Achieving specific and agreed upon financial goals. |
| Related Parties | There are no related parties. |
| Actions to be Taken by the Company during the Memorandum’s Duration | The company will follow all relevant regulatory procedures to complete negotiations and reach the final acquisition agreement. |
| Approvals | This acquisition deal is expected to be completed in the fourth quarter of 2024 (representing the third fiscal quarter of Etihad Atheeb Company), and the completion of the acquisition deal is subject to a number of conditions, including:
1- Obtaining the approval of the Extraordinary General Assembly of Etihad Atheeb Company in accordance with what is stated in the Companies Law and the rules for offering securities and continuing obligations.
2- Obtaining the approval of the Capital Market Authority regarding the acquisition deal and the shareholders’ circular.
3- Obtaining a no-objection to the acquisition deal from the General Authority for Competition.
4- Obtaining any other necessary or appropriate approvals regarding the acquisition transaction. |
| Additional Information | Etihad Atheeb Company will announce any material developments regarding the deal in due course |
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