Bawan signs MoU to divest entire stake in Bina Industrial for SAR 76.7 mln

Logo of Bawan Co.

Bawan Co. signed today, July 25, a binding memorandum of understanding (MoU) to sell its entire stake in Bina Industrial Investments Holding Co., including its assets and liabilities, to one of the current shareholders, Ahmed Mohammed Al-Osaimy.

In a statement to Tadawul, the company added that the deal value stands at SAR 76.7 million, to be paid in 24 equal monthly installments. The unpaid amount of the sale price will be subject to financial interest according to the prevailing rates.    

The parties agreed that the shares will be sold based on the balances of the company's audited financial statements as of June 30, 2023. The sale will be effective on July 1.  

The parties will draft a sale and purchase agreement during the MoU term to document the details of the sale process and the related terms and conditions.   

The MoU is effective for 60 days from the signing date, and it may be renewed by mutual agreement.   

Al-Osaimy is a related party to the deal, as he is on Bina board.

The deal will deliver a capital gain of approximately SAR 3 million, in addition to the interest income calculated during the payment period.

The sale is conditional on obtaining the necessary approvals from the relevant regulatory authorities.

The parties agreed that the payment will be guaranteed by pledging the sold shares in favor of Bawan until the completion of the payment process. The buyer will also sign a promissory note for the total value of the deal.   

Bawan holds a 56.75% stake in Bina’s capital of SAR 5 million.

Bawan's ownership in Bina is the lowest compared to its stake in other subsidiaries. This segment does not have a material impact on Bawan’s strategic plans and future expansions.