Al Maha Ceramics Company is looking at the possibility of acquiring a majority stake in another Omani tiles manufacture Al Hael Ceramics Company.
Al Maha Ceramics on Sunday announced that it has signed a non-binding memorandum of understanding (MoU) along with Al Anwar Investments Company and the shareholders of Al Hael Ceramics to explore the possibility of acquiring the majority of existing shares of Al Hael. Al Maha Ceramics is an associate firm of Al Anwar Investments.
Al Hael is based in Oman and has a state-of-the-art plant equipped with world's best Italian production lines in terms of machineries and latest technology. 'Al Hael has an annual production capacity of 15mn sqm to produce world class premium quality and large sizes of porcelain and ceramic tiles,' Al Maha Ceramics said in a disclosure submitted to the Muscat Stock Exchange. In a separate disclosure to the Muscat Stock Exchange, Al Anwar Investments confirmed that it has signed a non-binding MoU along with Al Maha Ceramics and the shareholders of Al Hael.
Al Anwar Investments owns 23.74 per cent shareholding in Al Maha Ceramics, as per the company's latest available financial statement.
The transactions contemplated by the MoU are conditional, inter alia, on the completion of a satisfactory financial and legal due diligence investigation (by Al Maha Ceramics and Al Anwar Investments) and evaluation of Al Hael, the companies said in their disclosures.
Al Maha Ceramics and Al Anwar Investments both said that they will provide an update about the transaction to their respective shareholders in due course. As per the company's website, Al Hael was established in 2014 with a vision to manufacture the world's finest ceramic and porcelain tiles along with world-class quality designs.
Al Hael's factories, equipped with eight production lines, are located in the Sur Industrial Area spread over 200,000 sqm.
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