Bawan inks binding MoU to acquire Petronash Holding

The MoU will expire upon signing of the sale and purchase agreement (SPA), expected on or before Sept. 30.

Financial advisors to Bawan and Petronash are PricewaterhouseCoopers and Piper Sandler, respectively.

The parties agreed that Petronash Holding’s equity stake is valued at $175 million (approximately SAR 656.25 million), subject to achieving set financial targets over the next three years.

Bawan will pay to Petronash Global an initial amount of $80 million (approximately SAR 300 million) in exchange for 80% of Petronash Holding’s shares, subject to the necessary terms and approvals under the SPA.

Bawan will also pay Petronash Global a maximum of $60 million (approximately SAR 225 million), subject to achieving set financial targets over the next three years.

Additionally, Bawan will purchase the remaining 20% of Petronash Holding’s shares after the audited financial statements for 2027 or 2028 are issued, at an agreed valuation method.

Petronash Holding’s founder will be the chairman of the board for three years from the date of closing under the SPA. This will enable him to continue supporting the company in achieving its targeted growth in the coming years.

Additionally, the company’s senior executive management team will continue to work for the company and support future operations and growth plans.

The deal included no related parties and is subject to finalizing the due diligence and signing the SPA.

The proposed transaction is subject to the approvals of the relevant authorities, including the General Authority for Competition (GAC).