Saudi Automative Services Co. (SASCO) agreed to buy Zaiti Petroleum Services Co (LTD) from Madaen Star Group and Majid al-Othman, who owns 5 percent of the group, for the initial price of SAR 58 million in cash, the company said in a statement to the Saudi bourse, Tadawul.
The purchase will be final after obtaining the necessary approvals from SASCO’s board and the regulators as well as conducting due legal and financial diligence. Such procedures are expected to be completed by the end of Sept 2014.
According to the agreement, ownership of 3 premises owned by Zaiti will be transferred to 3 of the previous owners of Zaiti in accordance with their book value. One of the buildings will be rented out to Zaiti for 5 years.
Zaiti Petroleum owns and operates fuel stations in Riyadh, Alkharj, Alqassim and Abha. In 2013, it made SAR 124 million in revenue and SAR 5.5 in net profit.
SASCO signed in October last year a memo of understanding with Madaen to buy Zaiti, according to Argaam. SASCO operates automative services shops and highway rest houses and motels.
SASCO Chairman Ibrahim al-Hudaithi owned indirect 95 percent stake in Zaiti through Madaen Group.
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