Raoom Trading Co. — M&A Activity 2023

Mar 8, 2023

Raoom Trading Company (Raoom) announces that it has signed a (non-binding) Memorandum of Understanding to acquire all shares of the Qassim Corrugated Box Factory Company by increasing the company's capital through the issuance of shares to the owners of the Corrugated Carton and Paper Products Factory Company.

4144 · 08/03/2023 15:43:20 · Announcement #72303 · View on Saudi Exchange

Raoom Trading Company (Raoom) announces that it has signed a (non-binding) Memorandum of Understanding to acquire all shares of the Qassim Corrugated Box Factory Company by increasing the company's capital through the issuance of shares to the owners of the Corrugated Carton and Paper Products Factory Company.

Element List	Explanation
Introduction	Raoom Trading Company (Raoom) announces that it has signed a (non-binding) Memorandum of Understanding to acquire all shares of the Qassim Corrugated Box Factory Company - a one-person company with limited liability It is a company specialized in producing and manufacturing many types of corrugated carton, which serves the food and beverage sectors, the industrial, service, logistic and other sectors, and its annual revenues exceed 90 million Saudi riyals., which is wholly owned by Al-Arifi Trading, Industry and Contracting Company by increasing the company capital through the issuance of new shares in Raoom Trading Company.
Date of signing the Memorandum of Understanding	2023-03-08 Corresponding to 1444-08-16
Memorandum Duration	The MOU shall be effective for a period of 120 days after the signing date, subject to extension with the consent of both parties.
Name of the Counterparty	Raoom Trading Company (Raoom) announces that it has signed a (non-binding) Memorandum of Understanding to acquire all shares of the Qassim Corrugated Box Factory Company by increasing the company's capital through the issuance of shares to the owners of the Corrugated Carton and Paper Products Factory Company.
Name of Financial Advisor of Each Party	The Company has appointed Wasatah Capital as its financial advisor in respect of the Proposed Transaction
Major Terms in the Memorandum	Raoom Trading Company and Qassim Corrugated Box Factory Company agreed in a non-binding manner according to the memorandum of understanding that in the event that it was decided to implement the potential transaction, the implementation mechanism would be through the issue of new shares for the owners of Qassim Corrugated Box Factory Company for the purpose of acquiring all the shares of Qassim Corrugated Box Factory Company, provided that the final agreements are signed after completing the necessary studies, and the due diligence.
Related Parties	The Proposed Transaction might involve related parties, in which case the details of this will be announced at a later stage.
Actions to be Taken by the Company during the Memorandum’s Duration	The Proposed Transaction is subject to satisfactory completion of financial, tax and legal due diligence.
Approvals	The Proposed Transaction is subject to obtaining the regulatory approvals of the competent authorities and the approval of the Company's Extraordinary General Assembly.

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