Nofoth eyes majority stake in Al Waal Al Bari Beverages
NOFOTH
2288 -1.48% 7.30 -0.11
Riyadh – Mubasher: Nofoth Food Products Company has signed a non-binding memorandum of understanding (MoU) to explore the potential acquisition of a 70% equity stake in Al Waal Al Bari Beverages Company.
The agreement, signed on 28 June 2026, aligns with Nofoth’s broader 2026–2030 strategic plan, which emphasizes business diversification and expansion within the food and beverage sector through targeted acquisitions in complementary industries.
The MoU establishes a preliminary framework for Nofoth to evaluate the feasibility of acquiring a controlling interest from several owners of Al Waal Al Bari Beverages, a limited liability firm.
The target company operates the Al Waal brand, which specializes in the specialty coffee shop sector. Its operations are vertically integrated, encompassing a coffee roasting facility as well as a dedicated laboratory for the production of sweets and baked goods.
Under the terms of the 180-day agreement, Nofoth will initiate a comprehensive due diligence process. This evaluation will cover legal, financial, tax, and zakat perspectives to ensure a thorough understanding of the target company’s standing.
The MOU also includes provisions for the professional valuation of Al Waal Al Bari Beverages to determine a fair purchase price. During this period, both parties have committed to strict confidentiality and exclusivity, ensuring that negotiations remain private and that the sellers do not engage with other potential buyers.
The sellers are required to cooperate fully by providing all necessary documentation and are restricted from taking certain material actions that could affect the company’s value or structure during the duration of the MOU.
While the agreement sets the stage for a potential transaction, Nofoth emphasized that the memorandum is non-binding regarding the final execution of the deal.
The completion of the acquisition remains subject to the satisfactory results of the due diligence and valuation processes, the procurement of all necessary regulatory and contractual approvals, and the eventual signing of definitive, legally binding agreements.
Nofoth confirmed that there are no related parties involved in this transaction. Regarding the financial implications, the company stated that there is no immediate financial impact resulting from the signing of the MOU.
Any significant financial effects will be determined and disclosed following the conclusion of the final valuation and the potential signing of a definitive purchase agreement.
The 180-day term of the memorandum may be extended should both parties provide written consent. Nofoth has committed to keeping the market informed of any material developments regarding the progress of the negotiations or the results of the due diligence process as they arise.
The move marks a significant step in Nofoth’s 2026–2030 strategy, which prioritizes the acquisition of entities that offer horizontal or vertical integration opportunities.
By targeting a specialty coffee and bakery operator, Nofoth aims to strengthen its market position and diversify its portfolio within the competitive Saudi hospitality and food production landscape.
Source: Mubasher Source: {{details.article.source}}