Qassim Cement Co (QCC) signed a non-binding memorandum of understanding (MoU) with Hail Cement Co (HCC) to commence discussions for QCC to acquire all issued shares of HCC.
In a statement to Tadawul, QCC said both parties will proceed with the due diligence in relation to the proposed transaction. If the deal completes based on the exchange ratio, the total consideration to be paid by QCC to HCC’s shareholders will be approximately 18.92m newly-issued shares in QCC.
Based on QCC’s closing price on 21 September of SAR75 (US$20) per share and on the exchange ratio, the deal would value each HCC share at SAR14.5, which represents a premium of 18.7 per cent to HCC share price as of 21 September 2022.
If the transaction proceeds, a share exchange offer will be made by QCC (the offeror) to HCC (the offeree) for the acquisition of all HCC’s issued shares except for those owned by QCC.
