SARCO extends MoUs to acquire 2 companies

Logo of Saudi Arabia Refineries Co. (SARCO)

Saudi Arabia Refineries Co. (SARCO) agreed on Oct. 6 with Golden Compass Mining Services Co. and German Saudi Industrial Co. (GESICO) to extend the non-binding memoranda of understanding (MoUs) to acquire stakes in both companies for an additional three months from the MoUs expiry date.

In two separate statements on Tadawul, the company said the extension was due to SARCO's appointment of specialized advisers. In addition, the firm seeks to complete the necessary procedures and conduct the financial, legal, commercial, and technical evaluations. This comes as part of the company's efforts to complete the transaction in accordance with the regulatory procedures.

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SARCO appointed the financial, legal, financial, and tax due diligence, as well as technical due diligence advisers, to carry out the due diligence, the necessary assessments, and final negotiations, as well as sign the agreement in preparation for submitting the related files to the relevant authorities for approvals.

There is no change in costs associated with the extension, the company said.

In July, SARCO signed two non-binding MoUs to acquire entire stakes in GESICO and Golden Compass through a share swap deal for shares held by shareholders of both GESICO and Golden Compass. The deals entail issuing new shares through a capital increase as part of the proposed deals, according to data available with Argaam.