SAIC signs non-binding MoU for probable acquisition of at least 30% of Educational Guide

Saudi Advanced Industries Co.'s logo

Saudi Advanced Industries Co. (SAIC) signed a non-binding memorandum of understanding (MoU) with Educational Guide for Training and Education Co. for the possible acquisition of no less than 30% stake in the company.

The MoU is effective from Jan. 1. 2022, for a period of six months, subject to renewal with the consent of both parties, the company said in a bourse statement.

An exclusive period has been agreed upon between the two parties during which a financial and legal due diligence examination and financial evaluation of the proposed transaction value will be conducted, and any party may terminate the MoU by written notification.

The MoU is intended for reaching a final agreement to acquire at least 30% of Educational Guide. For the final evaluation, however, the determination of the transaction value and the target share is linked to the final agreement between the two parties.

The acquisition is in line with SAIC’s strategy and future plans as one of the targeted sectors approved by the board of directors.

This potential acquisition is expected to add value to the company and its shareholders, and to benefit from the opportunities offered by the Kingdom's Vision 2030 programs, particularly, in the education and training sector, the statement added.

The Saudi-listed firm appointed Adeem Capital as the financial advisor for this transaction.

Any material developments regarding the MoU or the proposed acquisition will be announced at a later time, the statement also said.

Educational Guide works in the field of establishing and operating international and private schools, training and other educational activities.

For More M&As