Saudi food delivery firm Jahez to acquire dessert delivery platform The Chefz for $172.9M
The deal is subject to regulatory approval and is expected to close in the first quarter of 2023. Post-acquisition, the share capital of Jahez will increase from $27.9 million (SR104.9 million) to $28.9 million (SR108.7 million).
Saudi-based food delivery platform has signed a share purchase agreement to acquire 100% share capital of The Chefz, a Saudi-based dessert delivery platform, for SR650 million ($172.9 million).
According to a report by Wamda and Saudi Gazette, earlier this year, Jahez was listed on Nomu, Saudi Exchange's parallel market, with a market capitalisation of $2.4 billion.
The deal is subject to regulatory approval and is expected to close in the first quarter of 2023. After the acquisition, the share capital of Jahez will increase from $27.9 million (SR104.9 million) to $28.9 million (SR108.7 million).
The transaction involves a cash consideration of SR325 million and an issuance of new shares in Jahez with a value of SR325 million, which represents 5% of its share capital.
According to a Jahez spokesperson, “The transaction will allow Jahez to complement its leading food delivery platform in quick service with The Chefz’s offerings in fine dining, confectionery, and leisure goods."
Jahez signed the share purchase agreement with Abdulrahman Abdullah Alshabanat, Abdulrahman Ahmed Almarshed, Abdullah Mohammed Aldosari, Saqr Fund L.P, Impact 46 Seed Fund/Impact Seed Fund Co, and Muthmir for Investment Co.
As part of the deal, the founding members of The Chefz will receive an earn-out of SR100 million in cash, subject to various performance-related targets attained between January 1, 2022, and December 31, 2022, said the report.
Edited by Swetha Kannan