Bawan signs MoU to divest entire stake in Bina Industrial for SAR 76.7 mln

Bawan Co. signed today, July 25, a binding memorandum of understanding (MoU) to sell its entire stake in Bina Industrial Investment Holding Co., including its assets and liabilities, to one of the current shareholders, Ahmed Mohammed Al-Osaimy.  

In a statement to Tadawul, the company added that the deal is valued at SAR 76.7 million, to be paid in 24 equal monthly installments. The unpaid amount of the sale price will be subject to financial interest according to the prevailing commercial rates.  

The parties agreed that the shares will be sold based on the balances of the company's reviewed financial statements on June 30, 2023. The approved effective date for the sale will be July 1, 2023.  

The parties will work on preparing the sale and purchase agreement during the MoU duration to document the details of the sale process and the related terms and conditions. 

The MoU is effective for 60 days from the signing date, and it may be renewed by the mutual agreement. 

Ahmed Mohammed Al-Osaimy is a related party to the deal, as he is a Bina Industrial’s board member. 

The deal will result in a capital gain of approximately SAR 3 million, in addition to the financial interest income calculated during the payment period. 

The sale is conditional on obtaining the necessary approvals from the relevant regulatory authorities. 

The parties agreed that the payment will be guaranteed by mortgaging the sold shares in favor of Bawan until the completion of the payment process, in addition to the buyer's signing of a promissory note for the total value of the deal. 

Bawan holds a 56.75% stake in Bina Industrial’s capital of SAR 5 million.  

Bawan's ownership in Bina Industrial is the least compared to its stake in other subsidiaries and is not considered to have a fundamental impact on Bawan’s strategic plans and future expansions. 

Source : Argaam