Taiba says due diligence to acquire firms owning Centro hotels in Saudi Arabia disclose material facts

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Taiba Investments Co. announced that the due diligence review for the complete buyout of the two companies owning Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah showed important material information that need to be fulfilled by the company that owns the two hotels before completing the purchase agreement.

According to a bourse filing, these critical comments required a great deal of time to be processed and guarantees, which were not submitted by them until the end date of the extended memorandum of understanding (MoU).

In addition, the company that owns the two hotels raised the agreed purchase price in the MoU.

Accordingly, Taiba stated that the extended MoU expired on Dec. 6, without reaching any agreement, noting that it retains all legal and statutory rights in accordance with the MoU provisions.

In September, Taiba extended the MoU with Shuaa Capital for the complete buyout of the two companies owning Centro Waha Hotel Riyadh and Centro Shaheen Hotel Jeddah for an additional 90 days, according to data compiled by Argaam.

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