Riyadh – Mubasher: Rawasi Albina Investment Company has signed a non-binding memorandum of understanding (MoU) with the owner of Riyadh-based Al Amlaq Al Hadidiyah Trading Establishment.
The agreement outlines the potential acquisition of 50% of the economic value of the establishment.
Should the transaction be finalized, the target entity will be converted from a sole proprietorship into a limited liability company, with ownership split equally between Rawasi Albina and the current owner.
The MoU, signed on 1 July 2026, establishes a framework for the acquisition process over a period of six months. This duration may be extended or renewed for a similar period subject to mutual agreement between both parties.
The target company, Al Amlaq Al Hadidiyah Trading, maintains a specialized market presence in the wholesale trade of metal and iron pipes across various regions of the Kingdom of Saudi Arabia.
Its operational scope further includes the wholesale of iron and metal sheets, sections, and blocks, as well as various types of wood and general contracting and construction activities.
Rawasi Albina stated that this strategic move is designed to enhance integration between its existing business lines and the trade of iron and construction materials used in its projects.
The company anticipates that this vertical integration will improve execution efficiency, expand its broader business base, and allow it to capitalize on emerging opportunities within the Saudi contracting and construction sectors.
The final financial valuation of the deal has not yet been determined. According to the disclosure, the definitive price will be established only after the completion of comprehensive financial, legal, and technical due diligence.
Furthermore, the transaction is contingent upon the parties reaching a final agreement on terms and securing all necessary regulatory approvals from the relevant Saudi authorities.
Regarding the financial implications, Rawasi Albina confirmed that there is no immediate financial impact resulting from the signing of this non-binding MOU. However, the company has outlined its funding strategy should the deal proceed to completion.
The acquisition would be financed through the company’s internal resources and operational cash flows, negating the need for external debt or third-party financing.
The company emphasized the non-binding nature of the current agreement, noting that Rawasi Albina incurs no legal or financial obligations if the transaction is not completed or if either party decides to withdraw for any reason.
Any material developments regarding the valuation or the progress of the due diligence phase will be disclosed to shareholders in accordance with market transparency regulations.
The company recently won a major infrastructure project by the Saudi Energy Company at a total value of SAR 36 million excluding value-added tax (VAT).
