iOud signs MoU with Afaq Food Fund to acquire Thannah Trading

The MoU outlines the potential acquisition of 100% of the capital shares in Thannah Trading Co., owned by the fund, through a share swap agreement.

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In a statement to Tadawul, iOud announced the appointment of Amwal Financial Co. as its financial advisor for the transaction, in conjunction with the signing of the MoU. Amwal will oversee and coordinate the acquisition process.

The MoU is valid for 180 days from the signing date, with the possibility of extension upon written agreement by both parties. iOud also confirmed that any significant developments related to the potential deal will be announced in due course.

Under the key terms of the MoU, iOud will acquire 100% of the shares in Thannah Trading through a share swap. A comprehensive financial and legal due diligence process will be conducted as part of the transaction.

During the validity period of the MoU, Afaq Food Fund is prohibited from entering into negotiations with other parties regarding Thannah Trading’s shares. The negotiations between the parties involved will aim to finalize an acquisition agreement, subject to obtaining all necessary regulatory approvals.

The company highlighted a related-party relationship in this MoU. Abdallah Adlan, iOud’s board member, also serves as General Manager of Thannah Trading.

iOud assured stakeholders that all regulatory requirements regarding related-party transactions will be adhered to in accordance with CMA regulations.

iOud emphasized that the proposed deal's completion is subject to the successful conclusion of financial and legal due diligence, followed by negotiations to finalize the acquisition agreement.

The company also noted that several conditions, including obtaining necessary regulatory approvals, must be met for the transaction to proceed.

This strategic move aligns with iOud's plans to expand within the hospitality sector, complementing its existing operations.

The company seeks to diversify its portfolio of Saudi-made products and enter the market for manufacturing hospitality products, including Saudi coffee and tea. By leveraging Thannah Trading’s commercial presence, iOud aims to drive business growth and broaden its customer base.