Talco Extends MoU to Acquire Dammam Aluminum Factory

Al Taiseer Group Talco Industrial Co. has extended a non-binding memorandum of understanding to acquire a 60% stake in Eastern Aluminum Extrusion Factory in Dammam, pushing the agreement's validity to 23 February 2027 to complete due diligence and feasibility studies.

The MoU was originally signed on 23 November 2025 for a nine-month period, with an option to extend by written agreement between the parties. That validity has now been extended by an additional six months, running from 24 August 2026 until 23 February 2027, giving both sides more time to finalize financial and legal due diligence and other studies.

The agreement remains preliminary and non-binding. The purchase price and the valuation of the 60% stake have not been publicly disclosed in Saudi Riyal terms. The transaction is contingent on the completion and confirmation of feasibility studies, the determination of the factory's fair value by the appointed financial advisor, Alinma Capital, and the completion of due diligence by Talco's advisers before any definitive share purchase agreement is signed.

Talco's Board of Directors has approved proceeding with the acquisition process, subject to those conditions. The MoU includes a framework of initial mutual obligations and rights between the two parties, as well as confidentiality clauses covering how information is handled during the process.

For the community and local industry, the move signals continued consolidation and investment in Saudi Arabia's manufacturing and aluminum sector, particularly in the Eastern Province. As of now, no signing date for a definitive share purchase agreement has been announced, and no details on payment structure or consideration amounts have been made public. Updates on the transaction are disclosed through the Saudi Exchange (Tadawul) issuer announcements, the official capital-market disclosure channel for listed companies.

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