Saudi Arabia’s Bawan Co. Bawan has signed a binding memorandum of understanding (MoU) with Petronash Global Ltd, as stated in a report to Tadawul. This MoU will be rendered void upon the signing of the sale and purchase agreement (SPA), which is anticipated to occur on or before September 30.
PricewaterhouseCoopers and Piper Sandler are serving as financial advisors for Bawan and Petronash, respectively.
The parties have agreed to value Petronash Holding’s equity stake at $175 million (SAR656.25 million), contingent upon meeting specified financial targets over the next three years.
Bawan intends to pay Petronash Global an upfront payment of $80 million (SAR300 million) for an 80 percent share in Petronash Holding, pending the requisite terms and approvals outlined in the SPA.
Additionally, Bawan may pay Petronash Global up to $60 million (SAR 225 million) based on the achievement of designated financial targets during the next three years.
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Furthermore, Bawan will acquire the remaining 20 percent of Petronash Holding’s shares after the audited financial statements for either 2027 or 2028 are released, using an agreed-upon valuation method.
The founder of Petronash Holding will serve as the chairman of the board for three years following the SPA’s closing, allowing him to aid in the company’s growth objectives in the upcoming years.
Moreover, the senior executive management team of the company will remain in their roles to support ongoing operations and future growth initiatives.
This transaction does not involve any related parties and is contingent upon completing due diligence and executing the SPA.
The proposed acquisition is subject to approval from relevant authorities, including the General Authority for Competition (GAC).
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