Shams withdraws from Hemaia’s acquisition deal

Tourism Enterprise Co.’s (Shams) board of directors has withdrawn from the acquisition deal of Hemaia Group, the company said in a bourse statement.

Shams attributed the deal cancellation to financial liabilities on Hemaia Group, which were not disclosed by its owners. 

Also, these financial obligations were not recorded in the company’s audited statements and the due diligence report.

Shams also canceled the acquisition of Saud Al Khalifa Madaj & Co. for transferring funds, gold and jewelry and Saud Al Khalifa Madaj & Co. for security services.

Shams indicated that no cash payments were transferred pertaining to the acquisition deal, adding that the cancellation decision has no relevant financial impact.

In June, Shams acquired a 53 percent stake in Hemaia Group.