Each of the Arabian Centers Company and Fawaz Al-Hokair Company acquired 51% of the shares of Voga Closet Limited, English, at a value of $ 36.7 million.
According to Arabnet, the Arabian Centers Company said in a statement that it signed a share purchase agreement yesterday, to acquire 39,253 thousand ordinary shares of Voga Closet Limited, which represents 25.5% of the target company's shares after increasing its capital.
She added in her statement to the Saudi Stock Exchange, Tadawul, that this acquisition was made through the acquisition of 13,598 of the current shares of the target company, at a value of $ 6,360,348 (23,857,286 Saudi Riyals), in addition to increasing the target company's capital by 25,655 ordinary shares worth 11,999,906 dollars (44,999,647 Riyals).
VogaCloset Ltd. of England is the owner and operator of the website www.vogacloset.com. The target company will continue to be independently operated and managed by its founding executive and management team, which includes the CEO, Chief Operating Officer and Chairman of the Board of Directors. The target company will continue to manage and operate the online e-commerce platform.
This deal will allow the Arabian Centers Company to access a leading international website that enjoys a strong position and presence in the Middle East and the Kingdom of Saudi Arabia and brings it closer to its customers.
In a related development, Fawaz Al Hokair Company announced the signing of an agreement to purchase 39,253 shares of Voga Closet Limited, which represents (25.5%) of the capital after increasing it under this agreement. The value of the deal is 68,856,933 riyals.
The purchase price will be paid in cash to the owners of the target company upon completion of the signing of the amended incorporation contract in accordance with the regulations and laws, and the transaction will be funded through the company's internal resources.
The agreement also provides for the continued receipt of the existing shareholders (after the transaction is completed) in the target company; Including its executives, earn-out additional payments based on the valuation of their shares held over the three consecutive fiscal years after the transaction is completed, and the terms of the additional payments are based on some basic requirements agreed in the agreement that must be met regarding the company's performance, With a maximum of additional payments in all cases.
