Dur Hospitality issues board circular for its acquisition by Taiba

Logos of Taiba Investments Co. and Dur Hospitality Co.

Dur Hospitality Co. announced issuing the board circular related to its potential takeover by Taiba Investment Co., including the opinion of Dur’s board of directors on the offer addressed to its shareholders with respect to this transaction and Taiba’s post-acquisition plans for Dur and its employees.

The circular, which was prepared in accordance with the requirements of Article (39) of the Capital Market Authority’s (CMA) Merger and Acquisition Regulations, also includes the independent advice provided to Dur's board of directors by financial advisor HSBC Saudi Arabia.

The circular concluded that Dur’s board members, who have no direct interest in the deal, see the acquisition transaction as fair and reasonable. They also assume the takeover is in the interest of Dur and its shareholders. Therefore, they unanimously advised Dur’s shareholders to approve of the deal.

This is after exercising the appropriate due diligence with the assistance of their advisors and after factoring in the market situation on the date of this circular's publication and the future growth opportunities for Taiba after completing the acquisition deal.

HSBC Saudi Arabia, in its capacity as Dur’s financial advisor on the deal, also believes that the stock exchange offer agreed upon under this agreement is financially fair to the company.

Dor will announce any material developments in this regard in a timely manner, the statement added.

Meanwhile, Taiba also published the following documents earlier today:

1. The offer document addressed to Dur’s shareholders with respect to the acquisition deal, which includes the details related to the offer by Taiba to Dur’s shareholders for the purpose of the transaction.

2. Taiba’s shareholder circular in relation to increasing the company’s share capital for the purpose of the transaction.

The CMA approved, on Nov. 6, Taiba’s application to increase its capital from SAR 1.60 billion to SAR 2.60 billion by issuing 100 million ordinary shares to acquire Dur through a stock exchange offer, according to Argaam’s data.

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