Batic Investment and Logistics Co. signed, on May 1, 2021, an agreement with Smart Parking Holding Co. for the acquisition of a 35.8% stake in Smart Cities Solutions Company for Telecom and Information Technology, for an estimated price of SAR 107.9 million, according to a bourse statement.
The duration of the agreement is four months from the date of signing, the statement said, adding that the deal price will be reviewed and determined definitively by the buyer after the financial advisor finalizes the evaluation report.
BATIC will pay the purchase price to the seller in two instalments as follows:
- Advance payment of SAR 5.4 million;
- Last payment after the completion of the transaction terms and conditions of SAR 102.5 million.
The acquisition percentage has been increased to 35.8%, the statement said, adding that the approval of the relevant official authorities will be sought.
AlJazira Capital was appointed as financial advisor to conduct the financial evaluation of Smart Cities Solutions.
The deal has the following related parties:
- Ahmed Al Sanie, chairman of BATIC and owner of Smart Cities Solutions, directly and indirectly
- Feras Al Bawardi, board member and shareholder of BATIC, and CEO of Jasara Holding, an owner of 7% direct stake holder in Smart Cities Solutions
The acquisition comes in line with the strategic direction of BATIC to expand and increase the share of its domestic investments in the integrated services sector to keep pace with the revival and positive economic changes that Saudi Arabia is witnessing in its ambitious Vision 2030.
This deal is to strengthen the position of BATIC and its subsidiaries on the map of leading companies in Saudi Arabia and the Middle East in providing smart cities solutions and integrated services.
It is to be noted that BATIC has controlling shares in some companies that provide integrated and specialized services such as specialized transportation (refrigerated transportation, cash in transit and gold transportation), security and safety services, as well as facilities management and maintenance.
Smart Cities Solutions is a specialized company in providing advanced technical services and solutions for smart cities. The company offers some applications for cities (such as smart parking management and associated monitoring technology) according to the seven technologies that the World Bank has classified for smart cities, to keep pace with global progress in the industry and apply it in Saudi cities.
In addition, Smart Cities Solutions has a 25-year concession contract for developing, establishing and operating smart parking in three main cities in Saudi Arabia, namely Khobar, Dhahran and Dammam.
In April 2021, BATIC signed a memorandum of understanding (MoU) with Smart Parking Holding Co., to acquire 34.4% of Smart Cities Solutions Co., Argaam reported.
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