National Company for Learning & Education signs off SR72 mln contract with Al Salam Education and Training

13 Jul 2022

Riyadh - Maaal

Pursuant to the MoU signed on 13/09/1443 H Corresponding to 14/04/2022 G and announced in Tadawul on 13-09-1443 H corresponding to 14-04-2022 G, the final agreement was signed to purchase the entire shares of the shareholders of Al Salam Education and Training Company (Al-Salam)- limited liability company (Owner of Alsalam Schools in Al-Khobar city).

National Company for Learning and Education (NCLE) signed a purchase agreement (“Agreement”) to purchase the entire shares of the shareholders of Al-Salam for an agreed price of SR 72 million.

NCLE has conducted all due diligence and valuation work through its external advisors. The valuation was done using different methods such as Discounted Cash Flow, P/E and EBITDA Multiples methods.

اقرأ المزيد

Transaction Terms:

The agreement contains several warranties and representations by the Sellers regarding the commercial aspects such as the accuracy of the information in Al-Salam’s accounts and financial statements and the validity of assets ownership, in addition to other warranties related to Al-Salam’s liabilities and its employees as well as the indemnification of any unrecorded liabilities in the company’s records for the period prior to the closing date of the transaction.

The agreement is also subject to several conditions precedent that must be fulfilled by the Sellers within (150) days from the date of signing the agreement, including obtaining the necessary regulatory approvals.

In addition, the agreement includes the Sellers obligation to maintain company’s commercial operation as usual and to sustain all contractual relationships with its suppliers and customers as well as its responsibility to its employees and the compliance with all the regulations in Saudi Arabia. The agreement also includes restrictions to the Sellers in carrying out specific tasks and work specified in the agreement and its annexes until the closing date prior to receiving written consent of the buyer.