PHOTO
Saudi building materials maker Bawan Company has confirmed that the signing of its acquisition deal with UAE-based Petronash Holding has been delayed.
The sale and purchase agreement (SPA) for Bawan to take over all of the engineering company’s shares from Petronash Global is now likely to be signed in October 2024, instead of the initially expected date of September 30, Bawan said in a filing with the Saudi Stock Exchange (Tadawul).
“The procedures related to signing the agreement have not been completed to date,” the firm said on Monday.
Bawan had previously announced the signing of a binding memorandum of understanding (MoU) to acquire the entire outstanding shares of Petronash Holding. The MoU was to expire upon the signing of the SPA.
The shares to be acquired have been valued at $175 million.
Bawan had said it would pay Petronash an initial amount of $80 million in exchange for 80% of the target shares and another $60 million, subject to the company achieving set financial targets over the next three years.
The remaining 20% would be purchased once the company releases the audited financial statements in 2027 or 2028.
In the latest statement, Bawan said there is no change in costs despite the delay in the signing of the SPA.
(Writing by Cleofe Maceda; editing by Seban Scaria)
