BinDawood Holding's board OKs SAR 186.5M acquisition of Jumeirah Trading

Logo of BinDawood Holding Co.

BinDawood Holding Co.'s board of directors (independent and non-executive members, excluding related parties) approved the 100% acquisition of Jumeirah Trading Co., according to a Tadawul filing today, May 23.

The 100% stake is valued at SAR 186.5 million, subject to the company’s adjustment of the net debt and working capital, based on the terms of the share purchase agreement (SPA). The amount will be paid to the seller in cash, as per the agreement, said the company.

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The planned transaction is pending the shareholders’ voting in the general assembly meeting and other regulatory approvals, including that of General Authority for Competition (GAC), it added.

BinDawood Holding also indicated that the seller is AbdulKhaliq BinDawood, noting that the deal will be funded by the company’s internal fund resources.

Jumairah Trading operates as a limited liability company engaged in wholesale, retail and distribution. It conducts its business through four divisions, including luggage, food, toys and households.

Its revenues rose from about SAR 111 million in 2022 to SAR 143 million in 2023. Net profit also advanced from SAR 13.3 million in 2022 to SAR 22.2 million in 2023.

According to BinDawood Holding, the potential acquisition is in line with its strategic vision to expand its operations in distribution, to reduce supply chain risks and to improve profitability margins via vertical integration.

It expects the planned takeover to be highly value accretive financially in the quarter during which it is completed, likely during the second half of 2024.

BinDawood Holding also noted that Jumairah Trading is considered a related party to the deal as board member Abdulkhaliq BinDawood has a direct interest. Additionally, Abdulrazzag BinDawood, Khalid BinDawood and Tariq BinDawood have an indirect interest.

The planned transaction is pending the shareholders’ approval and the signing of the required agreements, besides completion of related regulatory procedures.

BinDawood Holding will announce the completion of the transaction or any other material developments in due course.

The board members (excluding those having interest) are supervising the potential acquisition, it said.