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Saudi food delivery firm Jahez signed a non-binding pact to acquire The Chefz, months after Delivery Hero SE’s attempt to buy the firm was thwarted by the local competition watchdog.
Jahez International Co. for Information Systems Technology, as the firm is formally known, plans a full takeover of The Chefz, according to a statement. The consideration for the proposed transaction will be based on a due diligence and will include cash and shares in Jahez.
Saudi Arabia’s General Authority for Competition last year rejected Delivery Hero’s takeover offer for The Chefz, without disclosing any details or the reasons for its decision.
The Chefz, which started out as an app that specialized in home delivery for fine dining restaurants before expanding its services in the kingdom, competes against Delivery Hero’s Hungerstation and Jahez.
Jahez is the biggest locally owned food delivery group in Saudi Arabia. The firm made its trading debut in January after pricing its initial public offering at the top end of a planned range.
The shares have gained about 24% this year, giving it a market value of about $2.9 billion.
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