Arabian Entertainment (AEC), a food, beverage and entertainment company in Saudi Arabia, and Sagaliam Acquisition entered into a definitive merger agreement.
Under the terms of the deal, Supraeon Investments, the tharget’s parent company, will combine with Sagaliam and list on the Nasdaq after rebranding as Tarfeeh Holdings, Ltd.
The transaction is expected to provide AEC up to $151.5 million, including $35 million from an anticipated PIPE offering and $116.5 million of SPAC cash in trust assuming no redemptions. That’s based on a pre-transaction equity value of $379 million. No additional funding beyond the PIPE is contemplated for the business combination, which includes a minimum net cash condition of $25 million to close.
The deal also includes two earnouts totalling 30 million shares if certain stock price thresholds are met, according to an 8-K filing.
AEC owns the exclusive rights to the Applebee’s and Ocean Basket franchises in Saudi Arabia. Read more.
