Saudi Arabia-based Taiba Investments Company has signed a binding implementation agreement to make an offer to acquire 100 percent stake in Dur Hospitality Company, a leading Saudi 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 $426 million to $692 million, thus registering a 62.3 percent 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.
In 2021, Dur Hospitality Company and Taiba Investment Company entered into preliminary discussions to combine their businesses, potentially forming a company with a market value of about $2.4 billion in the Kingdom’s real estate, hospitality and investment industry.