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Batic Investments and Logistics Co. signed, on April 13, 2021, a memorandum of understanding (MoU) with Smart Parking Holding Co., to acquire 34.4% of Smart Cities Solutions Co. , according to a bourse statement.
Smart Parking owns 40% of Smart Cities Solutions.
The target stake accounts for 86% of Smart Parking’s ownership in the company.
Both parties agreed that the financial consideration for this acquisition will be in cash payment, upon agreement of terms and conditions. The duration of the MoU is four months from the date of signing the agreement, the statement said.
Batic will conduct valuation, along with financial, legal, administrative and operational due diligence of Smart Cities Solutions.
Related parties include Ahmed Mohammed Al Sanie, chairman of Batic and a shareholder of Smart Cities Solutions (with direct and indirect interest). Also, Feras Albawardii, Batic board member and shareholder, and CEO of Jassara Co., who owns 7% of Smart Cities Solutions.
The proposed acquisition procedures are subject to approval of relevant authorities.
The MoU aims to define the framework of mutual obligations and rights between the two parties regarding the acquisition process, to ensure that the implementation is in accordance with the proposals and understandings submitted and approved by both parties.
Smart Cities Solutions specializes in providing services and advance solutions for cities to be classified as smart cities according to the seven technologies classified by the World Bank, and to keep pace with the global progress in the industry and its application in Saudi cities.
Smart Cities Solutions has been granted a concession for 25 years to establish a project and operate smart parking solutions in the cities of Khobar, Dhahran and Dammam.
The transaction is a continuation of BATIC’s strategic direction, which aims to support and align its investment and growth plans with the renaissance and economic changes that the Kingdom is witnessing in line with Vision 2030.
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