The Arab Technical Contracting Company announced the conclusion of a purchase agreement to acquire the entire shares of Faden Advertising Agency, with a capital of 25 million riyals, so that the latter becomes wholly owned and 100% by Al Arabiya.
The Arab Technical Contracting Company said in a statement to the Saudi market (Tadawul) today, Wednesday, that the board of directors approved, in its meeting yesterday, the approval of the purchase agreement to acquire the entire stakes of Faden Advertising Agency, with the total value of the deal reaching 1.05 billion riyals.
The Arab Technical Contracting Company explained that the completion of the deal is subject to a number of preconditions contained in the purchase agreement, including obtaining approvals from the relevant government agencies, including obtaining the approval of the General Authority for Competition.
And it indicated that the parties to the agreement are: The Arab Company for Technical Contracting as the buyer, and Prince Abdulaziz bin Mashhour bin Musaed bin Abdulaziz Al Saud, owner of Faden Advertising Agency as the seller.
The Arab Company for Technical Contracting stated in the statement that the financing of the deal will be done through bank loans in addition to the company's own resources, explaining that the financial impact of the agreement cannot be determined at this stage and it is expected that the financial impact will be reflected upon completion of the deal and transfer of ownership.
This deal represents an extension of the strategy of the Arab Company for Technical Contracting by entering into profitable alliances and partnerships locally and regionally, with the aim of advancing the company’s position, maintaining its leading position and enhancing its market share by taking advantage of its competitive advantages and acquiring a larger share of the outdoor advertising market, whether in advertisements on By road or in indoor advertisements.
It is noteworthy that Faden Advertising Agency was established in the Kingdom of Saudi Arabia in 2006, with its headquarters in Riyadh, and its business activity in Saudi cities is focused on digital advertising media on buildings and advertisements within retail stores.
