| Element List | Explanation |
|---|---|
| Introduction | Rawasi Albina Investment Co. is pleased to announce the signing of a non-binding Memorandum of Understanding (MoU) with the owner of Al-Amlaq Al-Hadidiyah Trading Establishment, headquartered in Riyadh, to acquire 50% of the economic value of the establishment. Upon completion of the proposed transaction, the establishment will be converted into a company jointly owned by both parties, with each party holding a 50% ownership interest. The establishment specializes in the wholesale of metal and steel pipes across the Kingdom, wholesale of metal and steel sheets, sections and billets, wholesale of all types of timber, in addition to contracting and construction activities. The transaction is expected to enhance integration between the Company's operations and the trading of steel products and construction materials used in its projects, which is expected to improve project execution efficiency, expand the Company's business base, capitalize on promising opportunities in the contracting and construction sector, and potentially enhance profit margins in the future. The final transaction value will be determined upon completion of the financial valuation, financial, legal and technical due diligence, agreement on the final terms and conditions of the transaction, and obtaining all required regulatory approvals. The Company will announce the final transaction value upon completion of the valuation process and receipt of the required regulatory approvals. |
| Memorandum Signing Date | 2026-07-01 Corresponding to 1448-01-16 |
| Counterparty | Al-Amlaq Al-Hadidiyah Trading Establishment |
| Memorandum Subject | Acquisition of 50% of the economic value of Al-Amlaq Al-Hadidiyah Trading Establishment, with the establishment to be converted, upon completion of the transaction, into a company jointly owned by both parties, each holding a 50% ownership interest. |
| Memorandum Duration | The Memorandum shall become effective from the date of signing and shall remain valid for a period of six (6) calendar months. This period may be extended or renewed for a similar period upon mutual agreement between the parties. |
| Related Parties | None |
| Financial Impact | There is currently no financial impact. Any material developments will be announced in due course. |
| Additional Information | The Memorandum of Understanding is non-binding and does not create any obligation on Rawasi Albina Investment Co. in the event that the proposed transaction is not completed or is terminated for any reason. The proposed transaction remains subject to the completion of financial, legal and technical due diligence, financial valuation, agreement on the final transaction terms, obtaining all required regulatory approvals, and completion of the procedures required to convert the establishment into a company, should the transaction be completed. If the transaction is completed, it will be financed through the Company's internal resources and operating cash flows, without the need for external financing. |
Rawasi Albina Investment Co. Announces the Signing of a Non-Binding Memorandum of Understanding with Al-Amlaq Al-Hadidiyah Trading Establishment to Acquire 50% of the Economic Value of the Establishment
AI Summary
- Rawasi Albina Investment Co. signed a non-binding Memorandum of Understanding (MoU) on July 1, 2026, to acquire 50% of the economic value of Al-Amlaq Al-Hadidiyah Trading Establishment.
- The Riyadh-based establishment, which specializes in the wholesale of steel, metal, and timber products, will be converted into a company jointly owned 50/50 by both parties upon completion.
- The MoU is valid for six months and the final transaction value will be determined following financial, legal, and technical due diligence.
- If finalized, the transaction will be funded through the company's internal resources and operating cash flows without the need for external financing.
