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City Cement Co. extended its non-binding memorandum of understanding (MoU) with Umm Al-Qura Cement Co. for an additional six months, the two companies said in separate statements.
The MoU aims to fully acquire Umm Al-Qura Cement via a share swap deal.
The extension is due to the appointment of specialized advisors to complete the necessary procedures and carry out financial, legal, commercial, and technical evaluations. This is part of the two companies' keenness to complete the deal in accordance with regulatory procedures and ensure the accuracy of completing the transaction procedures.
The two parties appointed financial, legal, and technical due diligence advisors. In addition, they hired commercial, Zakat, and tax due diligence advisors to conduct the necessary assessments and final negotiations. The advisors will also sign the agreement and apply to the relevant authorities for the necessary approvals.
There is no financial impact resulting from the MoU extension, and any relevant developments will be announced in due course, according to the statements. In November 2022, City Cement Co. signed a non-binding MoU with Umm Al-Qura Cement to start talks on a share swap deal, through which City Cement will acquire all issued shares in Umm Al-Qura Cement, according to data available with Argaam.
In April, both parties agreed to extend a non-binding MoU for an additional six months to mull a share swap deal.
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