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Saudi-based Taiba Investments Company said it has signed a binding implementation agreement to make an offer to acquire 100% stake in Dur Hospitality Company in exchange for issuing new shares in Taiba.
This comes following the deal inked by the duo in December last year on a possible securities exchange deal, including a non-binding agreement on structuring and share swap coefficient. Under this move, Dur shareholders will get on Taiba share for each stake.
The companies in its filing to the Saudi bourse Tadawul pointed out that the deal was concluded in compliance with Article (26) of the Merger and Acquisition Regulations, and in accordance with the Rules on Offering Securities and Continuing Obligations issued by the Board of the Capital Market Authority (CMA).
Following the merger, Taiba's capital has increased from SR1.6 billion to SR2.6 billion ($426 million to $692 million), thus registering a 62.3% increase.
Taiba announced its intention to submit an offer under the acquisition agreement pursuant to the terms and conditions set forth in the implementation agreement.