Monday 30 January 2023

Arabian Contracting Services to buy Faden Media for $280m

RIYADH, October 13, 2022

Arabian Contracting Services Company has announced that it has entered into an agreement with Faden Media, a major digital advertising media group in Saudi Arabia, to acquire the entire company for SR1.05 billion ($280 million).
A major player in the kingdom's outdoor marketing sector, Arabian Contracting Services Company is backed by the Middle East Broadcasting Company. The MBC Group had in 2020 acquired a minority stake in Al Arabia, the leading out-of-home advertising solutions provider in the region.
This deal represents an extension of the strategy of the Arabian Contracting Services Company by entering profitable alliances and partnerships locally and regionally, with the aim of maintaining its leading position, said the company in its filing to Saudi bourse Tadawul.
The pact will help enhance its market share by taking advantage of the competitive advantages and acquiring a larger share of the outdoor advertising market, whether roadside advertising or indoor advertisements, it stated.
Headquartered in Riyadh, Faden Media is a limited liability company set up by Prince Abdulaziz bin Mashhor bin Mosaad bin Abdulaziz Al Saud in 2006 with a capital of SR25 million. It has successfully established business across digital advertising media on buildings and retail stores.
Following the go-ahead from the company board, Arabian Contracting Services Company said it will pay 70% of the transaction value upon completion of the agreement and the remaining 30% on March 31, 2023.
The transaction will be financed from the bank loans in addition to company's own resources, it stated.
However, it clarified that the completion of the transaction was subject to a few pre-conditions mentioned in the purchase agreement, including obtaining approvals from the relevant government authorities, and obtaining the approval of the General Authority for competition.-TradeArabia News Service


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