Ataa has solid financial solvency to manage acquisition of Arabian Education: CEO

Ibrahim Al-Turki, CEO of Ataa Educational Co.

Ataa Educational Co. has solid financial solvency to manage and finance the planned acquisition of Arabian Education and Training Group (AETG), CEO Ibrahim Abdulkarim Al-Turki told Argaam in a telephone interview.

If the acquisition of Arabian Education is completed and the necessary regulatory approvals are obtained, the deal will help Ataa achieve its five-year strategy objectives, through reaching the target student count in a couple of years only, namely three years ahead of schedule.

Arabian Education owns several private and international schools, where almost 10,000 students are enrolled, in addition to its training and employment sector, Al-Turki explained.

Ataa is pushing ahead with its strategy, which was laid out before the company’s listing on Tadawul. Ataa strategy aims to pursue expansions, or build new projects, he added.

On Feb. 9, 2021, Ataa signed a binding memorandum of understanding (MoU) with AETG to acquire 100% of the company's shares in exchange for cash and shares in Ataa Educational, Argaam reported.

Both parties agreed that the acquisition value will be 75% paid in cash, while shares will be issued in Ataa Educational for AETG shareholders at 25% of the proposed value, once an agreement is reached.

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