Riyadh - Mubasher: Waja Company has signed a non-binding memorandum of understanding (MoU) to acquire a 5% equity stake in Owtad Al Fahad Company Limited, a Riyadh-based firm specializing in the construction and building sector.
The agreement, signed on 10 June, aligns with Waja’s long-term corporate strategy to strengthen its operational footprint and competitive positioning within the Kingdom’s rapidly expanding contracting industry.
The target company, Owtad Al Fahad, is a limited liability entity established in 2020. Despite its relatively recent entry into the market, the firm has secured a first-class classification in the construction and building sector.
This classification is a critical industry benchmark in Saudi Arabia, as it qualifies a company to bid on and execute large-scale, high-value infrastructure projects for both government and private sector clients.
Owtad Al Fahad provides a comprehensive suite of services, including general construction, finishing works, and specialized electrical and mechanical (MEP) engineering. The company is currently active in managing and executing various commercial and structural projects across multiple regions of the Kingdom.
According to the terms of the memorandum, the agreement will remain in effect for a period of six months from the date of signing. This duration is subject to extension, provided both parties reach a mutual agreement to continue negotiations.
Waja emphasized the non-binding nature of the MoU, noting that the document does not create a legal or financial obligation to finalize the transaction. The company retains the right to withdraw from the deal or alter its terms for any reason during this preliminary phase.
The financial valuation of the 5% stake has not yet been established. Waja stated that the final purchase price will be determined only after the completion of a thorough financial evaluation and a comprehensive due diligence process.
This due diligence will involve a detailed audit of Owtad Al Fahad’s financial statements, legal standing, and operational history to ensure that the investment aligns with Waja’s internal risk management and value creation standards.
Furthermore, the finalization of the deal is contingent upon obtaining all necessary regulatory approvals from the relevant Saudi Arabian authorities.
