National Building extends MoUs to buy stake in German Saudi Industrial, Etihad Al Kharj for 3 months

National Building & Marketing Co. extended the memorandums of understanding (MoUs) to acquire a 50% stake in German Saudi Industrial Co. for SAR 200 million and fully acquire Etihad Al Kharj Metal Casting Co., for three months until Dec. 7, 2020.

The extension came after the legal requirements for the acquisition deal was completed under the same terms and conditions previously approved in the letter of intent, the company said in a bourse statement.

The extension was driven by the precautionary measures adopted by the Kingdom to curb the COVID-19 outbreak and to complete regulatory procedures in this regard, the company noted, adding that any related developments will be announced in due course.

Last February, National Building inked two MoUs to acquire a 50% stake in German Saudi Industrial Co. for SAR 200 million and to fully acquire Etihad Al Kharj for SAR 20 million, Argaam reported.

The MoUs were first extended in June for three months until Sept. 7, 2020.

The deals are related-party transactions as board member Obaid Al Subiei owns 100% interest in with Etihad Al Kharj Metal Casting Co. while 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.