Batic affiliate completes acquisition of 40.6% stake in Saudi parking firm

Batic Investments and Logistics Co.’s affiliate, Arabian Security & Safety Services Co. Ltd. (AMNCO), completed the acquisition of a 40.6% stake in Saudi-based National Parking Co. (Mawgif), the company said in a bourse statement.

AMNCO acquired a 35% direct holding in Mawgif, in addition to an 8% indirect interest in the same firm, through its 70%-owned subsidiary, AMNCO Facility Management Co.

The acquisition was completed after AMNCO issued letters of guarantee for its direct and indirect stakes.

AMNCO issued SAR 65 million letters of guarantee covered by Batic in favor of the Eastern Region Municipality to bid for two projects for establishing, developing and operating multi-floor parking lots and smart parking lots in Dammam, Dhahran and Khobar.

The Ministry of Municipal and Rural Affairs earlier approved awarding the two projects to Mawgif for a total of 19,000 parking spaces under a 25-year contract.

The company was granted a grace period of 18 months for implementing the required infrastructure in return for a total lease value of SAR 1.24 billion over the contract term in favor of the municipality.

The two projects are:

-Tender for setting up and operating three sites to establish multi-floor parking spaces (a 25% of the built-up areas will be allocated for investment business) with a total area of 11,300 square meters as well as smart ground parking lots on the sidewalks and streets in Dammam. -Tender for setting up and operating three sites for the establishment of multi-floor parking (a 25% of the built-up areas will be allocated for investment business) with a total area of 11,700 square meters as well as smart ground parking lots on the sidewalks and streets in Dhahran and Khobar.

The financial impact of the deal is expected to show in H2 2019, the statement added.

Some related parties are involved in the deal, such as Ahmed Moahmmed Al-Sanie, AMNCO Facility Management, Jazil Investment Co. and Majid Al-Issa, the statement added.