Ataa Educational signs binding MoU to acquire Arabian Education for cash, shares

Logo of Ataa Educational Co.

Ataa Educational Co. signed today, Feb. 9, 2021, a binding memorandum of understanding (MoU) with Arabian Education and Training Group Co., to acquire 100% of the company's shares in exchange for cash and shares in Ataa Educational, according to a bourse statement.

The two parties agreed that the consideration for the acquisition will be a cash amount of 75% of the proposed transaction value and an issuance of shares in Ataa Educational for shareholders of Arabian Group at 25% of the proposed value, once an agreement is reached.

The MoU will be effective for 90 working days after the signing date.

The company named Aljazira Capital as financial advisor to manage the negotiation process and complete the acquisition upon agreement with the shareholders of Arabian Education and to carry out procedures with the relevant authorities.

In addition, Ataa will conduct due diligence on financial, legal, administrative and operational conditions of Arabian Education.

There are no related parties, the statement noted.

The procedures for the proposed acquisition are subject to approval from Ataa's extraordinary general assembly and the competent authorities' approval.

According to the company, the MoU is aimed to define the framework of initial mutual obligations and rights between the two parties regarding the acquisition process.

Arabian Education and Training Group is a closed Saudi joint-stock company with a paid-up capital of SAR 200 million. Its affiliate companies include Alfaisal International Academy, Naba Company, Creative Development Company, Academic Company for Educational Service, Al-Jawdah Private Schools, Almanahij Schools, Al-Yasmin International Schools, Al-Alson International Schools, Amjad Qurtoba Schools, and Glory Generation International School.