Muscat: Al Maha Ceramics, the leading Ceramic manufactures in the region is exploring the possibility to acquire a majority stake in Al Hael Ceramics Co.
Al Maha, in this regard, announced that it has signed a non-binding Memorandum of Understanding with the shareholders of Al Hael Ceramics Co. (Al Hael).
Al Hael is based in Oman with a state-of-the-art plant equipped with the world’s best Italian production lines in terms of types of machinery and the latest technology. It has an annual production capacity of 15 million sqm to produce world-class premium quality and large sizes of porcelain and ceramic tiles.
The acquisition will help Al Maha to substantially increase its production capacity and add to its product portfolio while benefiting from economies of scale.
The transactions contemplated by the MoU are conditional, inter alia, on the completion by Al Maha Ceramics and Al Anwar Investment of a satisfactory financial and legal due diligence investigation and evaluation of Al Hael, the negotiation and execution of definitive transaction documents with the Al Hael’s shareholders (including a share purchase agreement and a shareholders’ agreement), and receipt of all necessary corporate approvals, regulatory approvals and third-party consents.
The disclosure on MSX by Al Maha Ceramics stated that it will provide an update about the transaction in due course.