A new joint venture (JV) with a share capital of SR100 million is being established to open, operate and manage AlBaik restaurants in Al-Qassim.

This follows a non-binding memorandum of understanding (MoU) signed recently by Abdullah Al-Othaim Markets Company with AGAD United Company for Investment, one of the sister companies of AlBaik Food Systems Company Ltd.

According to the announcement posted on the Tadawul website, the purpose of the new limited liability company is to obtain license rights to open, operate and manage Al Baik restaurants in the Al-Qassim region. The new company’s headquarters will be in Saudi Arabia.

According to the MoU, the share of Abdullah Al-Othaim Markets Company will be 25 percent of the company share capital, while the share of AGAD Company will be 75 percent. Once both parties reach a final agreement, Abdullah Al Othaim Markets Company will finance its share of the capital from its own resources.

The duration of the MoU will be 90 days from its signature date.

Unless both parties agree in writing to extend the MoU duration, it should expire either by signing the final JV agreement that will establish the company or by the end of its duration.