Saudi Automotive Services Co. (SASCO) has terminated the portfolio management agreement with NCB Capital effective from Sept., 29, 2016.
“After a periodic review of all portfolios owned by the company, the board of directors sought to limit the company’s portfolios under two portfolio managers instead of three, and reduce the cost of portfolio management,” the company said in a bourse statement.
SASCO will continue their agreements with Saudi Fransi Capital (allocated amount of SAR 30 million) and Mulkia Investment Co. (allocated amount of SAR 50 million).
The portfolio that NCB Capital’s previously managed will be assigned to Mulkia Investment from Oct. 2, 2016 without any shares being liquidated.
Mulkia shall follow the same accounting treatment on investments available for sale which will be “evaluated at the end of each financial period with any increase or decrease on portfolio value to be realized in the owners’ equity at the balance sheet (without any financial impact on the income statement)”, the company added.
The company, which owns and operates fuel stations and rest houses, had signed a SAR 50 million portfolio management agreement with NCB Capital in September 2014, according to an Argaam report.
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