Al Majed for Oud Signs SAR 392 Million Acquisition Offer
Al Majed for Oud Company (4165) announced it has signed a non-binding offer to acquire a group of companies including Al Safa Pharmaceuticals and Medical Supplies and five other entities in the Gulf region, with an enterprise value of SAR 392 million. The consideration will be paid through a combination of cash and new shares valued at SAR 151.01 per share. The offer includes a six-month exclusivity period and is subject to regulatory and shareholder approvals.
Key Numbers
Al Majed for Oud Company (Tadawul: 4165) announced on June 14, 2026, that it has signed a non-binding offer with Othman Abdullah Othman Al-Suwaih, Abdullah Othman Abdullah Al-Suwaih, and Amr Othman Abdullah Al-Suwaih to acquire a target group of companies including Al Safa Pharmaceuticals and Medical Supplies and five other entities across the Gulf region.
Deal Details
| Item | Value |
|---|---|
| Enterprise value | SAR 392 million |
| Estimated net debt (as of Dec 31, 2025) | SAR 224 million |
| Share price in share component | SAR 151.01 (based on 90-day VWAP) |
| Exclusivity period | 6 months |
The consideration will be paid through a mix of cash and new Al Majed for Oud shares valued at SAR 151.01 per share based on the 90-day volume-weighted average price (VWAP).
Rationale
The acquisition aims to expand Al Majed's footprint in the pharmaceutical and medical supplies sector in the Gulf region, leveraging operational synergies with its existing portfolio.
Regulatory Hurdles
The transaction is subject to regulatory approvals and shareholder approval for any capital increase. If a binding agreement is not executed within six months, the offer will terminate.
Impact on Shares
No immediate share price reaction was reported. Investors will likely monitor the progress of regulatory approvals and the financing structure.
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