Saudi Industrial Development Company (SIDC) has announced that it had signed a non-binding MoU with Sudom Investment Company and Mohammed A. AlSwailm Holding to explore the acquisition of the entire share capital of Industrial Production Services Company, a major player in the Saudi construction and building sector.

The proposed transaction is part of its strategy to expand into new investment areas, diversify its revenue streams and reduce reliance on its existing businesses, said SIDC in its Saudi Exchange filing.

The acquisition move will be subject to a financial valuation, due diligence and the receipt of required regulatory approvals, it stated.

The company said there would be no financial impact from the signing of the MoU at this stage.