Najran Cement Co of Saudi Arabia announced the signing of a non-binding memorandum of understanding (MoU) with Ayan for Commerce & Industry (Ayan), according to which Najran Cement Co will study the feasibility of purchasing a minority stake in one of Ayan’s subsidiary companies that works in the building materials industry.
According to the Saudi Stock Exchange, the data of signing the MoU was 18 October 2023. The MoU is valid until 31 December 2023 and can be extended with the approval of both parties. Buying a stake ranging between 20-25 per cent of the subsidiary company.
As per the MoU, actions are to be taken by the company during the memorandum’s duration to evaluate the investment opportunity and carry out the necessary due diligence. Any material developments regarding the MoU or proposed transaction will be announced in due course.
Najran Cement Co was established in 2005 as a Saudi shareholder company. It obtained the first mining licence according to the new mining system approved by the late King Abdullah bin Abdul Aziz to establish a project for the cement industry in the region. The project includes the main plant located in Al Mandafan affiliated to Sultanah Centre, 240km northeast of Najran city, as well as a separate unit for grinding cement, which is located at the Aakfah Centre at about 70km from Najran city on the road leading to the Asir area.
