Arabian Entertainment Company, Ltd. ("AEC") has entered into a business combination agreement with Sagaliam Acquisition Corp. (NASDAQ:SAGA). The combined company is expected to trade on NASDAQ.
AEC's business model focuses on three complimentary pillars – franchise restaurants, fine dining & entertainment and live entertainment venues - in the MENA region. AEC owns the exclusive rights to the Applebee's and Ocean Basket franchises in Saudi Arabia.
Transaction to provide AEC up to $151.5 million in proceeds including an anticipated $35 million of immediate funding through a PIPE and up to $116.5 million of SPAC cash held in trust, based on a pre-transaction equity value of $379 million.
Proceeds will allow AEC to expand its presence in Saudi Arabia and the MENA region and diversify its offerings across the food, beverage and live entertainment eco-systems.
LOS ANGELES, CALIFORNIA and JEDDAH, SAUDI ARABIA, Nov. 16, 2022 (GLOBE NEWSWIRE) -- Arabian Entertainment Company Ltd. ("AEC"), a leading food, beverage and entertainment company in Saudi Arabia and Sagaliam Acquisition Corp. (NASDAQ:SAGA) ("Sagaliam"), a special purpose acquisition company ("SPAC"), announced today that they have entered into a definitive business combination agreement.
Under the terms of the agreement, Supraeon Investments, Ltd. ("Supraeon"), the parent company of AEC and Sagaliam will combine into a new company that is expected to be listed on NASDAQ and will adopt Tarfeeh Holdings, Ltd. as the corporate operating brand.
The transaction, once completed, will provide AEC with significant additional capital to continue its growth, better serve customers and execute its strategic plan to become a leading provider of food and beverage and live entertainment offerings in the MENA region.
In addition, Sagaliam and AEC expect to raise an additional $35 million through a private investment in public equities ("PIPE"). The anticipated $35 million from the PIPE is expected to be primarily used by AEC to pay transaction-related expenses and fund the expansion of its business platform in Saudi Arabia and the MENA Region.