RIYADH: AlKhaleej has announced a major acquisition deal with Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls. On March 28, 2024, AlKhaleej entered into a share purchase agreement to acquire 80% of the shares in Adhwa’a Al-Hidaya, representing 1,600,000 ordinary shares. This strategic move will result in the issuance of new shares in AlKhaleej, increasing its capital from SAR 650 million to SAR 878.57 million.
The transaction, valued at SAR 480 million, will see AlKhaleej’s total shares rise to 87.86 million, marking a 26.02% increase in share capital. Adhwa’a Al-Hidaya, established in 2005, boasts two educational complexes in Riyadh, including the prestigious Regit Grammar School Riyadh (RGSR), known for its international curriculum and association with the Royal Commission for Riyadh City (RCRC) International Schools Programme.
AlKhaleej’s valuation for the acquisition was set at SAR 1.365 billion, based on the average daily closing price over a two-month period leading up to the signing of the Memorandum of Understanding (MoU). Following the deal, the ownership percentage of AlKhaleej’s current shareholders will adjust to 73.98%, reflecting a change in voting power.
This acquisition underscores AlKhaleej’s commitment to investing in high-quality education and expanding its influence in the sector.