Riyadh - Mubasher: Intelligent Oud Company for Trading (iOud) signed a final acquisition agreement on 15 October with Thannah Trading Company to acquire 100% of its shares, valued at SAR 59.47 million.

The deal will be executed through a capital increase of SAR 11.70 million by issuing 1.17 million new shares to Thannah’s owners, according to a bourse filing.

Following the hike, Intelligent Oud’s capital will rise by 60% to SAR 31.20 million from SAR 19.50 million.

It is worth noting that the move is expected to dilute existing shareholders’ stakes by 37.50%.

The transaction aims to boost operations in the hospitality and food sectors, with medium- to long-term revenue and profit gains expected.

The acquisition is subject to approvals from the Capital Market Authority (CMA), Tadawul, the Competition Authority, and Intelligent Oud’s extraordinary general assembly.

It is expected to enhance revenues and profit margins over the medium to long term.

The Tadawul-listed company is valued at SAR 99.11 million, based on a three-month volume-weighted average price (VWAP) of SAR 50.83 per share.