Budget Saudi signs non-binding MoU to fully acquire AutoWorld subsidiary

United International Transportation Co. (Budget Saudi) signed today, Aug. 24 a non-binding memorandum of understanding (MoU) with the Saudi Economic and Development Holding Co. (SEDCO) to fully acquire its subsidiary, Al-Jazira Equipment Co. Ltd (AutoWorld), by issuing shares to the subsidiary owner.

In a Tadawul statement, the company said the MoU will enter into force from the signing date and will be effective for six months.

The final agreements will be signed after completing the necessary studies and due diligence, as well as after obtaining the regulatory approvals.

AutoWorld is one of the companies operating in the long-term operational leasing and car maintenance.

A financial advisor has not been appointed for this stage, and a specialized advisor will be hired to complete the financial and legal due diligence.

Any material developments in this regard will be announced in due course.

The proposed deal is subject to obtaining the regulatory approvals of the competent authorities and the extraordinary general meeting.

There are no related parties to the deal, the statement noted.