M&A bankers and advisors help Taiba seal Dur Hospitality deal

28 April 2023 Consultancy-me.com 2 min. read

Taiba Investments Company has acquired Dur Hospitality, one of the larger hotel and residential compound groups in the region.

Described as one of the most high-profile share transactions in the region to date, Taiba Investments Company has acquired a 100% stake in Saudi-based Dur Hospitality in exchange for share capital (which will be newly issued).

The deal comes following an agreement inked by the duo in December last year on a possible securities exchange deal, including a non-binding agreement on structuring and share swap coefficient. This month, the memorandum of understanding was converted into a binding agreement.

M&A bankers and advisors help Taiba seal Dur Hospitality deal

The two companies have however been in talks for much longer. In 2021, Reuters broke the news that Taiba Investments Company and Dur Hospitality had entered discussions to create a company with combined assets worth $2.4 billion across the Saudi Arabia’s hotel, tourism and real estate sectors.

The process accelerated late last year when dealmakers were brought on board to guide the process to a successful close. Taiba Investments Company appointed J.P. Morgan as its financial advisor and Khoshaim & Associates as its legal advisor. PwC was flown in to conduct the financial due diligence, and work out the tax and accounting structuring.

Dur Hospitality meanwhile tapped investment bankers from HSBC as its financial advisor, and appointed Abuhimed Alsheikh & Alhagbani as its legal advisor.

A filing to the Saudi bourse Tadawul shows that following the deal, Taiba’s capital has increased from SR1.6 billion to SR2.6 billion ($426 million to $692 million).

Riyadh-headquartered Dur Hospitality has a portfolio of around 30 hotels across Saudi Arabia with a total of over 5,000 rooms. Brands include Makarem Hotels Group and Shada Hotels, as well as IHG Hotels, Marriott Hotels, and Rixos Hotels (which are operated through franchise agreements with the global hotel chains).

In related deal news in the hospitality scene, last year CBRE supported Aldar Properties in its acquisition of Doubletree by Hilton in Marjan Island for a total consideration of AED 810 million ($220 million).