Qassim Cement and Hail Cement have signed a non-binding agreement on a securities exchange deal under which Qassim Cement will acquire all the issued shares in Hail Cement.
According to Arabiya Net, the two companies said in a statement that they will conduct the necessary professional due diligence studies related to the potential transaction.
Taking into account the successful completion of the financial evaluation studies and the outcome of the relevant due diligence studies, Hail Cement and Qassim Cement have agreed to move forward with discussions in the context of a non-binding swap coefficient whereby Hail Cement shareholders will receive 0.1933 new shares in Qassim Cement for each share They own it in Hail cement swap plants.
If the potential transaction is completed based on the swap factor, the total consideration to be paid by Qassim Cement to Hail Cement shareholders will be approximately 18,924,070 new shares in Qassim Cement.
Based on the closing price of Qassim Cement share, which amounts to 75 Saudi riyals as on September 21, 2022 AD, the evaluation of Hail Cement’s share price for the purposes of the potential transaction, if completed based on the swap factor, will be 14.5 riyals per share, which represents an increase in the cement share price. Hail by 18.7% compared to the closing price of Hail Cement share as on September 21, 2022.
The memorandum of understanding is a non-binding agreement to implement the potential deal, and the implementation of the deal is subject to an agreement between Hail Cement and Qassim Cement on a final binding agreement that defines the terms and conditions of the deal, which will include obtaining all necessary regulatory approvals and the approval of the extraordinary general assembly of both Hail Cement and Qassim Cement on the deal and related issues. out.
The two parties endeavor to complete the necessary professional care studies and sign the final binding agreement as soon as possible as necessary.
