Riyadh – Mubasher: Saudi Arabia’s Public Investment Fund (PIF) sealed a non-binding term sheet with Seera Group Holding to acquire 30% equity in the latter’s fully-owned subsidiary Almosafer Company for Travel and Tourism in exchange for up to SAR 1.55 billion.
Up to SAR 386 million earn-out amount of the total value will be paid once Almosafer achieves certain pre-agreed key performance indicators (KPIs) during 2023 and 2024, according to a bourse disclosure.
The PIF investment amount is based on a preliminary pre-money enterprise value of Almosafer and relevant subsidiaries worth a total of SAR 3.75 billion.
The agreement comes in line with Seera’s transformation plan, which was announced in 2017, to boost its businesses and reinforce long-term value for its shareholders.
Subject to obtaining regulatory approvals, Almosafer will use the proceeds of the transaction to endorse its growth and expansion plans, including investments in tourism assets, technology, and more.
Meanwhile, the term sheet became effective as of 12 September 2022 and will terminate if the two parties or any of them decided to end the agreement. The listed firm noted that the deal has no material impact on its financials.
In the first half (H1) of 2022, Seera incurred net losses after Zakat and tax of SAR 131 million, an annual drop of 43.04% from SAR 230 million.
