Al Khaleej Training Acquires Adhwa’a Al-Hidaya Schools Stake 

Al Khaleej Training and Education Company has formally announced the signing of a significant share purchase agreement aimed at acquiring controlling stakes in Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls, a closed joint stock company based in Saudi Arabia. The agreement, signed on March 28, 2024, marks a strategic move for Al Khaleej as it seeks to expand its presence in the education sector. 

Under the terms of the agreement, Al Khaleej will acquire 80% of the share capital of Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls through a capital increase. This entails the issuance of new shares in Al Khaleej to the selling shareholders of Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls. The capital increase will see Al Khaleej’s capital rise from SAR 650,000,000 to SAR 878,571,430, with the issuance of approximately 22,857,143 ordinary shares. 

Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls, established in 2005, operates two educational complexes in Saudi Arabia. One is located in the Al-Taawun neighborhood, accommodating 3,325 students studying the national and international curriculum. The other complex, Regit Grammar School Riyadh (RGSR), situated in the Ghirnata neighborhood, has a capacity of 1,200 students studying the international curriculum. RGSR operates under the Royal Commission for Riyadh City (RCRC) International Schools Programme. 

The acquisition deal, valued at 480 million SAR, signifies Al Khaleej’s strategic intent to strengthen its foothold in the education sector. It follows the company’s earlier announcement of a non-binding memorandum of understanding (MoU) with Adhwa’a Al-Hidaya Private Schools Company for Boys and Girls. 

Upon completion of the acquisition, Al Khaleej’s current shareholders will see their ownership percentage decrease from 100% to 73.98%, resulting in a reduction in their voting power. However, the move is expected to bolster Al Khaleej’s position in the education market and contribute to its growth trajectory. 

The agreement is subject to termination by either party within nine months if certain conditions are not fulfilled. However, with the potential acquisition promising a significant expansion of Al Khaleej’s portfolio and market presence, the company is poised to navigate the evolving landscape of the education sector in Saudi Arabia.