Anaam signs non-binding MoU to buy 51% stake in Saudi Wasit Establishment subsidiary

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Anaam International Holding Group signed on April 4, 2021, a non-binding memorandum of understanding (MoU) with Saudi Wasit Establishment for the potential acquisition of 51% stake in Saudi Wasit Factory for Entertainment & Beauty Systems.

The company said in a bourse statement that the MoU will be effective for a period of 60 days after the signing date and the transaction value will be paid in cash from Anaam’s internal resources.

Anaam will carry out due diligence, valuation and negotiate final agreements within the duration of the MoU.

Saudi Wasit Factory for Entertainment & Beauty Systems – a subsidiary of Saudi Wasit Establishment - was established in 2018 in line with Vision 2030, which focuses one of its goals on developing the tourism and entertainment sector in Saudi Arabia and localizing industries.

The factory is located in Sudair City for Industry and Businesses and occupies a land area of 26,000 square meters (sqm) and the production capacity is 5,000 tons annually.

The factory manufactures and produces children's toys, entertainment equipment and their accessories, including supplies for public gardens, beaches, parks, games for parks and water parks – all using materials manufactured locally.

The establishment implemented many projects for, but not limited to, the Ministry of Education, Ministry of Health, Ministry of Defense, and the municipalities of Madinah, Riyadh, Hail and Al-Jouf, in addition to other secretariats and municipalities in various regions of the Kingdom. It also supplied many products to various private sector companies.

The acquisition aims to diversify the business of Anaam, in addition to taking advantage of the opportunities, as the entertainment and tourism sector is of great importance for developing the local economy, diversifying sources of income, and increasing the country's GDP.

The procedures for the proposed acquisition are subject to the approval of the competent authorities and the extraordinary general assembly.

Any material developments regarding the MoU or the proposed acquisition will be announced in due course.

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