Ataa Educational Company signed an agreement to acquire the entire shares of the Arab Group for Education and Training Holding Company (a closed Saudi joint stock company) for a total value of 138 million riyals.
According to Arabiya Net, Ataa Educational said in a statement that this was after completing the due diligence procedures through the company's financial and legal advisors.
She added that the deal is financed through bank financing, and there are no special conditions.
She indicated that the Arab Group for Education and Training Holding Company is a closed Saudi joint stock company with a capital of 200 million riyals, and it works in the fields of education, training and employment.
And its subsidiaries, which are the Academic Company for Educational Services, the Al-Yasmeen International Company, the Jill Al-Majd International Schools for Foreign Education Company, the Development Creators for Rehabilitation Company, and the Al-Faisal International Academy Institutes Company for Training In addition to Al-Alsun International Private Schools and Amjad Cordoba Educational Services Company.
The Arab Group achieved revenues of about 228.6 million riyals in the fiscal year ending on July 31, 2020, while it achieved a net profit of about 4.7 million riyals.
Ata'a Educational Company expects the financial impact of the acquisition to appear starting from the first quarter of the fiscal year ending on July 31, 2022.
The Ataa Educational Company had signed an appendix to the memorandum of understanding with the Arab Group for Education and Training Holding Company, in which the two parties agreed to amend the structure of the financial consideration for the deal so that the cash consideration for the deal would be 60% of the value of the acquisition process, and the issuance of ownership shares in a tender company is 40% of the transaction value.
Ataa Educational stated, in a previous statement to Saudi Arabia's Tadawul, that it had agreed that the valuation of Atta's share price for the purpose of the acquisition process would be 44 riyals, representing an average closing of 90 days. Tadawul for the share price of Ataa Company after signing the memorandum of understanding and announcing the deal from February 9, 2021, to June 20, 2021.
