Logo of Batic Investments and Logistics Co.
Batic Investments and Logistics Co. signed a purchase agreement for the entire shares owned by Smart Solutions Co. Ltd, in the capital of Smart Cities Solutions for Communications and Information Technology, representing 4% of capital, for SAR 12 million.
Under the agreement, other partners in Smart Cities will independently waive in writing any priority or rights to purchase shares sold, the company said in a bourse statement.
The transaction is pending necessary official approvals by the Competition Authority and any other entities if necessary, before completing the quota transfer process, the statement added.
Meanwhile, the deal is conditional upon approval by Batic’s general assembly before completing the quota transfer process.
The purchase will be financed from Batic’s available cash resources.
Smart City Solutions reported a net loss of SAR 2.27 million for year ended Feb. 29, 2020, with a total revenue of SAR 808,564 for the fiscal year ended Dec. 31, 2020 (amended fiscal year), resulting from the limited trail operation of parking project in the Eastern Province, with total net loss of SAR 10.86 million, Batic said, noting that the company is still in the stage of construction & preparation of parking project.
This acquisition deal comes in line with the company’s strategy of growth and expansion to Smart solutions sector and BOT project within the Kingdom of Saudi Arabia.
Following the completion of the deal, Batic’s share of the financial results of Smart Cities Solutions will increase in terms of purchased shares.
The deal is a related party transaction as Batic’s board chairman, Ahmed AlSanie and board member, Firas AlBawardi, have indirect interests in the transaction.