GAS signs SAR 65.8M deal to buy stakes in 2 companies

Gas Arabian Services Co. (GAS) signed, on Nov. 24, binding agreements with Afaq Al Mustaqbal for Operation and Maintenance Co. (a major shareholder) to acquire a 12.90% stake in EagleBurgmann Saudi Arabia Ltd. (EBKSA) and a 40% stake in TCR Arabia Ltd.

The company agreed to purchase Afaq Al Mustaqbal’s stake in EagleBurgmann for SAR 48.7 million, it said in a statement on Tadawul. The price reflects a 15% discount on the stake’s estimated value of SAR 57.3 million, based on EBKSA’s total valuation of SAR 444.4 million.

GAS also agreed to purchase the full ownership stake of Afaq Al Mustaqbal in TCR Arabia for SAR 17.1 million. The price represents a 15% discount on the stake’s estimated value of SAR 20.1 million, based on TCR’s total valuation of SAR 50.3 million.

The transactions included the transfer of ownership in accordance with the agreements' terms and conditions, after securing the necessary regulatory approvals.

The company will fund the deals using its internal resources, the statement said. The payment will be made within 90 working days from the date of transferring the shares and recording them in the updated articles of association of the companies.

Revenue of EagleBurgmann and TCR since 2022 (SAR mln)

The stake acquisitions are aimed at strengthening investment opportunities and integrating them with the company's services.

The move aligns with GAS’ growth strategy, which focuses on expanding its business scope, diversifying income sources, and enhancing its position in the Saudi market.

Moreover, the company expects the transactions to enhance operational integration between manufacturing activities, sealing solutions, and non-destructive testing and metallurgical services.

GAS Chairman Abdulrahman Khalid AlDabal, Vice Chairman and CEO Faisal Khalid AlDabal and board member Khalid Abdulrahman AlDabal are related parties to the deal.

The three members abstained from voting on the acquisition decision to ensure fair governance and compliance with regulations, given their indirect interests in the transactions.

The transactions will be included among the agenda of business and contracts in which board members have an indirect interest during the upcoming general assembly, the statement said.

GAS appointed Yaqeen Capital to conduct a financial valuation of both companies, and appointed Value Capital to provide a fairness opinion on the transactions, including, but not limited to, reviewing the valuation reports prepared by Yaqeen Capital.

Any material developments related to the completion of the deals or regulatory approvals will be issued in due course, the statement added.