Bawan moves to fully acquire Petronash Global

Building materials manufacturer Bawan is set to fully acquire UAE-based PetronashGlobal, after signing a binding MoU valuing Petronash at USD 175 mn, Bawan said in a disclosure to Tadawul. The two companies are expected to sign a sale and purchase agreement (SPA) by Monday, 30 September, according to the disclosure.

The terms of the sale: Bawan will initially purchase 80% of Petronash’s shares for USD 80 mn, with a follow-on payment of up to USD 60 mn, which Petronash will need to meet three-year financial targets in order to unlock. Bawan will acquire the remaining balance of Petronash’s shares after the company publishes its 2027 and 2028 financials for an amount that will be determined through an “agreed valuation method and specified mechanism,” reads the disclosure.

Petronash’s post-acquisition leadership structure: Petronash’s founder will remain as company chairman for three years following the signing of the SPA, alongside his senior executive management team.

About Petronash: Established in 2000 in the UAE, the company specializes in manufacturing engineered packaged solutions for players in the oil and gas sector, boasting a total manufacturing area of 120k sqm spread across factories in the Kingdom, the UAE, Qatar, and India. Petronash’s main market is in the GCC, but it also exports its products to Africa, the Far East, and the Americas.

ADVISORS- Bawan tapped PwC as its financial advisor on the transaction, while Piper Sandler is advising Petronash.

IN OTHER M&A NEWS-

Liva Ins. tapped SNB Capital and Malath Cooperative Ins. hired Alinma Investment as financial advisors for their potential merger, the companies said in disclosures to Tadawul here and here. The pair had signed a non-binding MoU in August to conduct financial and legal due diligence on a potential merger. If the merger proceeds, one company will fully acquire the other by issuing new shares to the seller's shareholders.