Sadirat unit signs MoU with Nama Chemicals to acquire JANA

Logo of Saudi Industrial Exports Co. (Sadirat)

Saudi Industrial Exports Co.’s (Sadirat) subsidiary, Haddaj Co., signed on July 16 a non-binding memorandum of understanding (MoU) with Nama Chemicals Co. to acquire a stake in Jubail Chemical Industries Co. (JANA), a subsidiary of Nama.

The MoU also aims to negotiate the acquisition process, the two Saudi-listed firms said in separate statements to Tadawul.

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The MoU is effective from the date of its signing for a period of four months (120 days), unless the parties agree otherwise in writing.

The MoU includes a number of generally accepted provisions that regulate the confidentiality of information circulated between the two parties, the two companies said. They noted that the implementation of the potential acquisition process is subject to the two companies agreeing on a final binding agreement that specifies the terms and conditions of the deal.

These conditions will include obtaining all regulatory approvals for the deal and related matters.

The MoU does not necessarily mean that the two parties will reach a final and binding agreement regarding the potential acquisition process or that the acquisition will take place.

The conclusion of the proposed deal is subject to completing the due diligence process and then negotiating the signing of a binding agreement between the two parties, the statements pointed out, indicating that a financial advisor has not been appointed for this stage and a specialized advisor will be appointed to complete the due diligence process.

Any developments regarding the agreement will be announced.

Hatem H. Al-Sahibany (Chairman of Sadirat and Nama), Soliman H. Al-Jedaie (Sadirat board member and CEO of Nama), and Mohammed Al-Shuwaier (Nama board member and Chief Operating Officer at Sadirat).

The completion of the potential deal will be subject to several conditions, including obtaining the necessary regulatory approvals, in accordance with the relevant laws and regulations.