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Saudi based food delivery firm Jahez to buy rival Chefz for 173 mn dollars

The Saudi Arabia-based prepared food delivery company has signed a share purchase agreement to acquire 100 percent of the capital of The Chefz, a Saudi Arabia-based dessert delivery platform, for 650 million Saudi Riyals (172.9 million dollars).

According to a report by Wamda and the Saudi Gazette, earlier this year Jahez was listed on Nomu, the parallel market of the Saudi Stock Exchange, with a market capitalization of 2.4 billion dollars.

Regulatory approval is required, and the transaction is anticipated to close in the first quarter of 2023. After the acquisition, Jahez's capital will increase from 27.9 million dollars (104.9 million Saudi riyals) to 28.9 million dollars (108.7 million Saudi riyals).

The agreement includes a cash consideration of 325 million Saudi riyals and the issuance of new shares in Jahez worth 325 million Saudi riyals, representing 5 percent of its capital.

Saudi based food delivery firm Jahez to buy rival Chefz for 173 mn dollars

According to a Jahez spokesperson, "the transaction will enable Jahez to complement its leading quick-service food delivery platform with The Chefz's offerings in fine dining, desserts and leisure items."

Jahez signed the share purchase agreement with Abdulrahman Abdullah Al-Shabanat, Abdulrahman Ahmed Al-Murshid, Abdullah Muhammad Al-Dosari, Saqr for the LP Fund, 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 100 million Saudi riyals in cash, based on various performance-related targets achieved between January 1, 2022 and December 31, 2022, according to the report.

Also Read: Wipro Infrastructure Engineering acquires Pune-based startup Linecraft.ai

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