Arabian Contracting BOD approves purchase agreement to acquire entire shares of Faden for SR1.05 bln

On Tuesday, 11/10/2022, the Board of Directors of Arabian Contracting Services Co. issued its decision approving a purchase agreement (the “Agreement”) to acquire the entire shares of Faden Media (the “Company”), where the transaction value amounted to a total of one billion and fifty million (SR1,050,000,000) Saudi Riyals, therefore, Faden Media (the “Company”) will be fully owned by 100% to Arabian Contracting Services Co. Arabian Contracting Services Co. will pay 70% of the transaction value upon completion of the agreement and the remaining 30% will be paid on March 31, 2023.
The company said in a statement on Tadawul that it will pay 70% of the total transaction value upon completion of the agreement, and the remaining 30% will be paid on March 31, 2023.
The completion of the transaction is subject to a few preconditions mentioned in the purchase agreement (the “Agreement”), including obtaining approvals from the relevant government authorities, and obtaining the approval of the General Authority for Competition.
The transaction will be financed from the bank loans in addition to company’s own resources.
Prince Abdulaziz bin Mashhor bin Mosaad bin Abdulaziz Al Saud owner of Faden Media. (‘’Seller’’)
Faden Media (the “Company”) is incorporated in the Kingdom of Saudi Arabia in 2006, with it headquarter located in Riyadh, Faden has successfully established business across digital advertising media on buildings and retail stores.
Financial statements for the last three years of the asset forming the subject matter of the transaction:
Revenues:
2019: SR95,690,495
2020: SR85,684,166
2021: SR144,610,869
Q1 2022: SR39,100,000
Net Income:
2019: SR43,468,341
2020: SR28,429,015
2021: SR85,905,956
Q1 2022: SR11,100,000
This deal represents an extension of the strategy of the Arabian Contracting Services Co. by entering profitable alliances and partnerships locally and regionally, with the aim of advancing the company’s position, maintaining its leading position, and enhancing its market share by taking advantage of its competitive advantages and acquiring a larger share of the outdoor advertising market, whether roadside advertising or indoor advertisements.
The financial impact of the agreement cannot be determined at this stage, and it is expected that the financial impact will be reflected upon completion of the transaction and transferring the ownership.
The signing of this agreement does not mean its finalized, as this deal requires approvals from the relevant regulatory authorities. Arabian Contracting Services Co. will announce any further material developments at the time.