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Saudi Arabia's sovereign wealth fund, the Public Investment Fund, has signed a non-binding memorandum of understanding (MoU) with Middle East Paper Company (MEPCO) to acquire a "significant" minority stake.
The fund will subscribe to MEPCO’s newly issued shares at 31.50 riyals ($8.40) per share, subject to obtaining the Capital Market Authority and other regulatory approvals, the company said in a regulatory filing on Tadawul on Sunday.
The deal shall expire on July 31, 2023, or upon concluding a legally binding subscription agreement between MEPCO and the PIF, whichever is earlier.
MEPCO, an integrated paper manufacturer offering products for the packaging, construction and furniture sectors, has hired SNB Capital, while the PIF has authorized GIB Capital to advise on the deal.
The PIF acquisition is in line with its strategy to help diversify the kingdom's oil dependent economy and boost investment in domestic companies.
(Writing by Brinda Darasha; editing by Mily Chakrabarty)
