Almasar Education eyes 60% majority stake in Al Qalam Educational Trading

ALMASAR ALSHAMIL
6019 1.32% 23.10 0.30

Riyadh – Mubasher: Al Masar Al Shamil Education Company has entered into a non-binding memorandum of understanding (MoU) with the partners of Al Qalam Educational Trading Company to explore the acquisition of a 60% majority stake.

The agreement, announced in a recent regulatory disclosure, marks a significant step in Al Masar Al Shamil’s strategic efforts to expand its educational service portfolio and integrate complementary operations into its existing business framework.

The MoU will remain valid from the date of signing of 18 June until 30 September 2026. The disclosure noted that this period is subject to potential extensions should both parties agree that additional time is required to conclude the preliminary phases of the transaction.

The proposed acquisition involves Al Qalam Educational Trading Company, a limited liability entity. Al Masar Al Shamil has stated that the primary motivation behind this potential investment is the expansion of its educational services.

This move is consistent with the company’s long-term corporate strategy, which focuses on identifying growth opportunities that align with its current operational strengths in the Saudi Arabian education sector.

As of the date of the announcement, no financial advisors have been formally appointed by either party. However, Al Masar Al Shamil intends to hire specialized professional consultants to oversee the comprehensive due diligence process.

This investigative phase will be exhaustive, covering operational, financial, legal, and tax-related aspects of Al Qalam Educational Trading Company. The findings from these assessments will be instrumental in determining whether the transaction proceeds to a final, binding agreement.

The memorandum includes several standard provisions designed to regulate the relationship between the two parties during the negotiation and evaluation period.

These provisions include strict confidentiality requirements and exclusivity clauses. It is important to note that the current agreement is non-binding, meaning Al Masar Al Shamil is under no legal obligation to complete the acquisition. The finalization of the deal remains contingent upon the satisfactory results of the due diligence process and the successful negotiation of definitive terms.

Furthermore, the company has confirmed that there are no related parties involved in this transaction, ensuring that the deal is being pursued on an arm's-length basis. Beyond the internal negotiations, the completion of the 60 percent stake acquisition will require the attainment of all necessary regulatory and legal approvals from the relevant Saudi government authorities.

Source: Mubasher Source: {{details.article.source}}