United Wire Factories Co.’s (Aslak) memorandum of understanding (MoU) for the potential acquisition of a stake in Al-Raeda Industrial Investment Co. aims to boost the company’s revenue and allow new investments, CEO Nabil Al-Amir told Argaam.
He added that Al-Raeda operates in a different industrial segment, and it will help the company diversify its sources of income.
The target equity will be determined after the evaluation. It will have a fundamental impact on Aslak and enable Al-Raeda to implement its directional plans and expand its activity.
Borrowing is not expected as Aslak seeks to finance acquisitions from its own resources, Al-Amir said, noting that there are several non-cash acquisition options, which will be discussed in the coming period and announced in due course.
Established more than 20 years ago, Al-Raeda owns three factories in the Western Region, and operates in the aluminum, paper and chemical products sectors.
The company’s financial performance is encouraging and motivating, the top executive added. Aslak signed on Nov. 13 a MoU for the potential acquisition of a stake in Al-Raeda, according to data available with Argaam.
