Riyadh – The Filling and Packing Materials Manufacturing Company (FIPCO) has signed an agreement with Erad Investment Company to acquire the full minority shareholding at its subsidiary, FPC Industries Company.
FIPCO currently owns an 80% stake in FPC Industries, while the remaining 20% is owned by Erad Investment.
Under the acquisition agreement, FPC will be fully owned by FIPCO, according to a company statement to the Saudi Stock Exchange (Tadawul) on Monday.
The agreement stipulates that Erad Investment will sell its minority stake in exchange for 20% of the subsidiary's net profit a period of 10 years, until the end of 2029.
Moreover, a 10-year non-competition condition has been established by FIPCO to ensure that the Erad is obligated not to compete, directly or indirectly, with FPC during the period of the agreement.
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