SASCO unit signs MoU to acquire 70% of Tadbeer Recruitment’s capital

Logo of Saudi Automotive Services Co. (SASCO)

Saudi Automotive Services Co. (SASCO) announced that one of its subsidiaries, Investments and Equipment Co., signed a memorandum of understanding (MoU) with Tadbeer Recruitment Co.

The agreement aims to acquire 70% of Tadbeer Recruitment’s capital for SAR 85 million, conditional on converting the company from Class B to Class A and raising the capital to SAR 100 million from SAR 20 million, according to a Tadawul statement.

For More Mergers and Acquisitions

The MoU is effective from the signing date and will be extended for 90 days unless both two parties agree in writing to extend or amend its duration.

The two parties determined the framework of understanding regarding the initial mutual obligations and rights. Due diligence studies have also been completed to verify the second party's legal and financial status and produce satisfactory results for the first party.

The MoU included several generally accepted provisions that regulate information confidentiality. The potential deal is subject to a final binding agreement between the two parties determining the terms and conditions.

SASCO appointed Sultan AlShubaily CPA Co. to evaluate Tadbeer Co.

A specialized consultant will be appointed to complete the due diligence review, financial and legal.

Tadbeer has not appointed a financial advisor.

Tadbeer Recruitment is a closed Saudi joint stock firm, with a current capital of SAR 20 million. It focuses on the activities of domestic labor recruitment services, which meet the needs of the Saudi human resources market in both the business and retail sectors.

The potential acquisition aims to diversify the company's investments and integrate services between SASCO companies, the statement said.

The proposed acquisition is not subject to approvals.