Qassim Cement Company signed a non-binding memorandum of understanding to acquire Hail Cement Company for SAR 1.42 billion.

Qassim Cement Company (SASE:3040) signed a non-binding memorandum of understanding to acquire Hail Cement Company (SASE:3001) for SAR 1.42 billion on September 25, 2022. Upon completing the proposed transaction, Qassim Cement will issue about 18.92 million shares in favour of Hail Cement's shareholders at a price of SAR 75 per share. Hail Cement's shareholders will receive 0.1933 newly issued shares in Qassim Cement for every share they own in the Hail Cement.

The final exchange ratio will be set out in the definitive agreements of the Proposed Transaction. The Proposed Transaction is subject to the regulatory approvals, including approvals from the competent authorities and the approval of the extraordinary general assembly of each company and Subject to the satisfactory completion of financial evaluation of the Proposed Transaction and the results of the relevant due diligence exercise.