Jahez International for Information Systems Technology (Jahez) has signed an agreement to acquire 134,620 thousand shares in The Chefs SPV Ltd, representing 100% of the capital of The Chefs Company.
According to Arabiya Net, Jahez stated in a statement that the share purchase agreement was signed with the shareholders of The Chiefs Sellers, namely Abdul Rahman Abdullah Rashid Al-Shabanat, Abdul Rahman Ahmed Abdul Rahman Al-Murshid, Abdullah Muhammad Abdullah Al-Dosari, Saqr Fund LP Company, Early 46 Impact Fund Company, and Muthmer Investment Company. .
She added that based on the valuation of the shares of The Chiefs, which amounted to 650 million riyals, the financial consideration for the acquisition deal will consist of paying a cash amount of 325 million riyals. And the issuance of new shares in Jahez Company to the selling shareholders of The Chiefs Company, with the exception of Saqr Fund LP, at a value of 325 million riyals.
She explained that the shares were calculated using the average price of the trading volume of Jahez shares for the 5-month period preceding the signing of the agreement.
The new shares issued in Jahez Company will represent less than 5% of its capital upon completion of the acquisition deal, and upon completion of the acquisition deal, the capital of Jahez Company will be increased from about 104.9 million riyals to about 108.7 million riyals by issuing 376,879 thousand new shares with a nominal value of 10 Saudi riyals per share. The new shares are in favor of the selling shareholders of The Chiefs Company, with the exception of Saqr Fund LP.
Thus, Jahez’s shares increase from about 10.49 million ordinary shares, to about 10.87 million ordinary shares, which represents an increase of 3.6% of Jahez’s capital before the issuance of new shares. In addition, the founders of The Chiefs Company will receive an additional amount (earn-out). An amount of 100 million Saudi riyals to be paid in cash only if certain results are achieved in relation to the performance of The Chiefs Company during a certain period (earn-out period) starting from January 1, 2022 AD and ending on December 31, 2022 AD, as agreed upon between the founders of The Chiefs Company. And company is ready.
Jahez will own the entire capital of The Chiefs Company upon completion of the acquisition transaction, while the direct and indirect ownership of the shareholders of The Chiefs Sellers, with the exception of Saqr Fund LP, will represent 3.5% in the capital of Jahez Company after the capital increase, which will result in a decrease The voting power of the current shareholders of Jahez Company will decrease, and their ability to influence decisions that require the approval of the shareholders of Jahez Company will decrease.
The Chefs Company is the operating company for the Chefs application to deliver food, sweets, flowers and perfumes in the main cities of the Kingdom of Saudi Arabia.
The acquisition deal will allow Jahez to expand in the field of providing food delivery services from restaurants and enhance its platforms in the field of quick service restaurants.