National Building inks MoUs to acquire stakes in 2 companies

National Building & Marketing Co. signed on Thursday a memorandum of understanding (MoU) with Etihad Al Kharj Metal Casting Co. to fully acquire the latter for SAR 20 million, the company said in a bourse statement.

The Saudi-listed company also signed a MoU with the German Saudi Industrial Co. to acquire 50% of the company for SAR 200 million, National Building said in a separate statement.

Both the MoUs are valid for 3 months from the signing date.

The financial impact of the deals will be determined upon signing of the final binding agreements and will be reflected on the period in which the agreements will be signed.

The deals are related-party transactions as the board member Obaid Al Subiei owns 100% interest in with Etihad Al Kharj Metal Casting Co. while the board chairman, Fahad Al Thunayan has 55.66% stake in German Saudi Industrial Co., the statements added.

The acquisitions are part of National Building’s strategy to diversify its investments in industrial production projects.