flynas acquires 10% of Swissport Saudi Arabia for SAR 50M

The five-year ground handling agreement covers all commercial airports in Saudi Arabia and is renewable for another five years

flynas said it signed a sale and purchase agreement (SPA) and a shareholders’ agreement to acquire a 10% of Swissport Saudi Arabia Limited for SAR 50 million ($13.33 million), according to a statement to Tadawul.

The transaction also includes a limited variable consideration linked to shares, calculated in accordance with the mechanism stipulated in the two agreements.

The shareholders’ agreement grants flynas a call option to acquire an additional 10% stake in Swissport Saudi Arabia upon renewal of the ground handling agreement.

As part of both agreements, flynas entered into a five-year ground handling agreement with Swissport Saudi Arabia to provide ground handling services at all commercial airports across the Kingdom.

The ground handling agreement will run from March 6, 2027, through March 5, 2032, with an option to renew for an additional five years by mutual agreement.

flynas said it issued a notice on Sept. 6, 2026, to terminate its existing agreement with Saudi Ground Services Co. (SGS), the current service provider, with the termination taking effect on March 6, 2027, in light of its exclusive agreement with Swissport Saudi Arabia as the new ground handling services provider.

flynas said completion of the transaction is subject to customary closing conditions and obtaining the required regulatory approvals, including approvals from the General Authority of Civil Aviation (GACA) and the General Authority for Competition (GAC).

The transaction will be financed from the company’s internal resources, and there are no related parties involved.

Upon commencement of the ground handling services agreement, Swissport Saudi Arabia will become flynas’ exclusive ground handling partner across its domestic network in the Kingdom.

Annual purchases under the ground handling agreement will likely represent around 5% of flynas’ revenue, broadly in line with the annual purchases under SGS existing agreement.

Swissport Saudi Arabia Limited provides passenger handling, ground operations management and supervision, ground transportation, cargo and baggage loading and unloading, and other ground handling services. It also operates canteens and cafeterias under concession arrangements at factories, offices and shopping centers.

* Based on unaudited financial statements as of May 31, 2026, and audited financial statements as of Dec. 31, 2025, and Dec. 31, 2024.

The company said it will announce any material developments related to the agreements or the acquisition in due course.