Logo of Batic Investment and Logistics Co.
Batic Investments and Logistics Co. announced capital restructuring in the form of transferring its indirect stake in Smart Cities Solutions for Communications and Information Technology, which is owned by its subsidiary Arabian Company for Security and Safety Solutions (AMNCO), for the benefit of the parent company.
The company said in a bourse filing that it will acquire 35% of Smart Cities Solutions at a nominal value of SAR 35,000.
Under the transaction, AMNCO will settle the book value of shares sold (losses) to Batic Meanwhile, Batic will replace AMNCO in all commitments related to this deal, including the financing agreements with the banks that finance Smart Cities Solutions. The obligations registered on Smart City Solutions in favor of AMNCO will be transferred and settled to Batic.
The rest of the company's partners will independently waive in writing their preemptive rights to purchase the shares sold. The transaction is also pending the approvals of the relevant official and private bodies.
The deal is concluded with a related party, namely AMNCO (the seller), the statement said, adding that the transaction will be financed from the company's cash resources.
The financial statements of Smart Cities Solutions for the last three years will be as follows:
- Fiscal year ended Feb. 28, 2019 (not applicable).
- Fiscal year ended Feb. 29, 2020 (Total net loss of SAR 2.27 million).
- Fiscal year ended Dec. 31, 2020 (It was amended to be Dec. 31, with a total revenue of SAR 808,564 resulted from the limited trail operation of parking project in the eastern province, and a total net loss of SR 10.86 million).
The company is still in the stage of constructing and preparing the parking project.
The acquisition comes in line with the company's strategy of growth and expansion in the smart solutions sector and BOT project in the Kingdom.
There is no financial impact of the acquisition, as the shares are indirectly owned by Batic through its subsidiary AMNCO.
The company said the related parties are as follows:
- Ahmed Al Sanie: Chairman of Batic, and the direct and indirect owner, as he is also Chairman of AMNCO, which directly owns shares in Smart Cities Solutions.
- Majid Al Essa: Board member and shareholder of Batic, as well as board member of AMNCO.
- Mohammed Al Zamil: Board member of Batic and AMNCO.
- Firas Al Bawardi: Board member and shareholder of Batic, as well as board member of AMNCO and CEO of JASARA, which owns a 7% stake in Smart Cities Solutions.
- Fahad Algathami: Board member and shareholder of Batic, as well as board member of AMNCO.
In Sept. 2019, Smart Cities Solutions signed two agreements worth SAR 1.24 billion to establish, develop and operate multi-floor parking lots and smart parking lots with the Ministry of Municipal and Rural Affairs for 25 years, according to data compiled by Argaam.
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