Ataa amends MoU with Arabian Education, to pay 60% of deal value in cash

Logo of Ataa Educational Co.

Ataa Educational Co. signed an appendix to the memorandum of understanding (MoU) with the Arabian Education and Training Group Holding Co., where the two parties agreed that 60% of the deal value will be paid in cash, while the remaining 40% will be in the form of issued shares in Ataa.

Both parties agreed that Ataa share price will be evaluated at SAR 44 for the deal, representing the average closing of 90 trading days for Ataa stock price after signing the MoU and announcing the deal from Feb. 9 to June 20, 2021, the company said in a bourse filing.

The cash amount was agreed to be paid at 60% of the transaction value. It includes Arabian Education and Training Group Holding Company and its following subsidiaries, Academic Company for Educational Services, Al Yasmeen International Co., Glory Generation International National Schools, Creative Development Co., Al Faisal International Academy Institutes Training Co., Al Alson International Schools, and Amjad Qurtoba Company for Educational Services.

On the other hand, the issued shares in Ataa of the transaction value include the acquisition of Naba’a Educational Co.

The MoU was 55% complete and the expected date to close the deal is the first quarter of the current fiscal year.

Ataa signed on Feb. 9, 2021, a binding MoU with Arabian Education to acquire 100% of the company's shares in exchange for cash and shares in Ataa Educational, Argaam earlier reported.