Saudi Azm signs MoU to acquire AZM FinTech

Logo of Saudi Azm for Communication and Information Technology Co.

Saudi Azm for Communication and Information Technology Co. signed a non-binding memorandum of understanding (MoU) with AZM FinTech shareholders to full acquire the latter's shares.  

In a filing to Tadawul, Saudi Azm stated that it appointed Alinma Investment as a financial advisor for the proposed deal, adding that the MoU is effective 18 months.

During the MoU period, Saudi Azm will conduct full due diligence, valuation, final negotiations, signing the relevant agreements and applying for approvals from the relevant authorities.

 The financial consideration for the proposed transaction will depend on the results of the financial study, financial valuation, and due diligence.

The transaction is subject to obtaining the approvals of competent authorities and extraordinary general meeting on capital increase for the purpose of acquisition.

With the exclusion of clauses on confidentiality, governing law and dispute resolution, all other clauses outlined in the MoU are not binding on parties.

The transaction involves related parties who are members at the board of Saudi AZM, namely Chairman Majed Alosaimi, shareholder and Chairman of AZM FinTech, as well as Ali Albalaa, who is also a shareholder and board member of AZM FinTech. They also include Feras Aljuraywi who is a board member of AZM FinTech and a representative of Anova Investment Co. that owns shares in AZM FinTech.

Relevant developments will be announced in due course, the statement noted.

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