SPAC Sagaliam Acquisition Corp. (NASDAQ:SAGA) plans to merge with Arabian Entertainment Company in a deal that estimates the pre-merger equity value of the Saudi Arabian restaurant and entertainment group at $379M.
Under the agreement, Arabian Entertainment’s parent company, Supraeon Investments, will merge with Sagaliam to create a new entity called Tarfeeh Holdings. Shares of the combined company are expected to trade on Nasdaq.
The deal is expected to generate proceeds of up to $152M, including $35M in anticipated PIPE financing and up to $117M in cash from the SPAC’s trust, assuming no redemptions by Sagaliam shareholders.
Sagaliam’s sponsor has agreed not to sell its founder shares for at least 12 months following the merger.
Based in Saudi Arabia, Arabian Entertainment operates restaurants and entertainment venues in the Middle East and North Africa. The company also owns the exclusive rights to Applebee’s and Ocean Basket restaurants in Saudi Arabia.
Sagaliam held its initial public offering in December 2021, raising $116M.