SRMG subsidiary inks agreement to buy 51% of Thmanyah Publishing for SAR 33.3 mln
Saudi Research and Media Group’s (SRMG) subsidiary,Arab Media Co., signed, on July 13, an interest purchase agreement with Abdulrahman Ali Abumalih, Aseel Salah Baabdullah and Meem Company for Research and Studies, to acquire 51% of stake in Thmanyah Company for Publishing and Distribution for SAR 33.31 million, the company said in a bourse filing.
The transaction amount includes the purchase price and capital injection in Thmanyah Company. It will be funded from the SRMG’s resources and cash flows.
Thmanyah Company for Publishing and Distribution is a leading digital media company in Saudi Arabia and is involved in producing and distributing Arabic podcasts and documentaries on social media platforms.
However, the transaction is subject to the completion of several preconditions, including obtaining required regulatory approvals from the Ministry of Commerce to amend the articles of association of Thmanyah Company for Publishing and Distribution to introduce the Arab Media Co. as a new partner. Besides, approval of the General Authority for Competition and any other regulatory approvals will be required.
The agreement includes the customary warranties and representations provided by sellers in similar transactions, the statement said.
There is no direct impact on the SRMG’s obligations. The financial impact of this transaction is expected to reflect from Q4 2021.
SRMG’s acquisition of Thmanyah is part of the group’s new multi-platform approach and commitment to delivering original, unique and exclusive content to consumers through new digital and social platforms.
The company said that completing the transaction or any other material developments will be announced in due course.
There are no related parties, the statement noted.