GO signs MoU to acquire 51% stake in eJad Tech for SAR 86.7M

Logo of Etihad Atheeb Telecommunication Co. (GO) 

Etihad Atheeb Telecommunication Co. (GO) signed on Sept. 14 a binding memorandum of understanding (MoU) to acquire a 51% equity stake in eJad Tech Co. for SAR 86.7 million.

In a statement to Tadawul, the company pointed out that the acquisition will be funded through its internal resources and cash flow.

For more news and details on M&As

The completion of the transaction is subject to several conditions, including the founder's continued involvement with the company for at least five years post-acquisition, a non-compete clause for the founder and his family for five years followed by an additional two years, and the achievement of specific agreed-upon financial targets.

The MoU has a validity period of four months, and the acquisition is expected to be completed in the fourth quarter of 2024, coinciding with GO's third fiscal quarter.

The company anticipates a positive financial impact from this acquisition, as it will contribute to an increase in its revenue and profitability.

Further details regarding the financial impact will be disclosed upon completion of the necessary regulatory approvals and the closing of the transaction.