Aslak inks MoU for potential acquisition

United Wire Factories Co. (Aslak) signed yesterday, on Nov. 13, a memorandum of understanding (MoU) with Al-Raeda Industrial Investment Co. for the potential acquisition of a stake in the latter upon reaching a final agreement, according to a statement to Tadawul.

The MoU will be effective as of the signing date and will extend for 180 days, renewable.

The MoU aims to determine the mutual obligations as well as rights pertaining to potential acquisition. Both parties also discussed the final value of the deal after the completion of valuation and the due diligence process.

The relevant financial impact will be determined upon finalizing the final valuation and the deal includes no related parties.

The deal falls within the company’s strategic approach to diversify the sources of income and maximize profit from various investments.

Material updates will be duly revealed, the statement added.

Source : Argaam