Riyadh Cables acquires 51% stake in Uzbek entity for SAR 147.7M

Riyadh Cables seeks to buy majority stake in Artikul Aziya Kabel

Riyadh Cables Group Co. entered on Oct. 27 into a share purchase agreement (SPA) with the owners of Artikul Aziya Kabel LLC in Uzbekistan, through its wholly owned subsidiary Riyadh Cables Co., to acquire 51% of the shares of Artikul Aziya for SAR 147.7 million.

In a statement to Tadawul, the company said that the sellers are Mirzabotir Komilov and Mirzabaxodir Kamilov.

The SPA is subject to a set of conditions, including approvals from the Competition Promotion and Consumer Protection Committee of the Republic of Uzbekistan for the merger and transfer of ownership. Stipulations also include completing the legal requirements of the sellers and securing the regulatory consents from the current financing institutions of Artikul Aziya Kabel.

The transaction will be funded through Riyadh Cables’ internal resources and existing facilities, the statement added.

Artikul Aziya Kabel was established in 2013 and is considered one of the leading manufacturers in Uzbekistan, specializing in the production of power cables, electrical wires, solar energy cables, and cabling systems.

The following table illustrates Artikul Aziya Kabel’s revenue for the last three years:

The transaction falls within Riyadh Cables’ international expansion strategy, aimed at strengthening its presence in Central Asian markets and establishing a regional manufacturing and export platform in Uzbekistan.

It also seeks to diversify Riyadh Cables revenue sources by leveraging Uzbekistan’s resources, technology, expertise, and operational synergy thereby enhancing the group’s competitiveness in regional and global markets.

The transaction is expected to expand Riyadh Cables international operations establishing a regional manufacturing hub serving Asian and European markets, enhancing industrial integration and operational efficiency, with positive impact on the company’s financial position.

No related parties are included in the deal, the statement noted, indicating that the transaction advisor is PricewaterhouseCoopers (PwC).