East Pipes issues SAR 173.2M PO to related party

East Pipes Integrated Company for Industry issues purchase order to Welspun Corp Ltd

East Pipes Integrated Company for Industry issued a purchase order (PO) to Welspun Corp Ltd. (WCL), a related party, for the manufacture and supply of steel pipes at a total value of SAR 173.2 million.

In a statement to Tadawul, the company said that the deal’s term is three months, noting that this order relates to a limited part of an existing project previously awarded to East Pipes. The PO was placed in response to the client’s request to accelerate execution of the main phase of a critical gas infrastructure project.

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Deliveries are expected to be finalized before the end of Q3 2025/26. The financial impact of the PO will be reflected in Q3 2025/26, the statement added.

The deal is a related party transaction as WCL is the largest shareholder of East Pipes with a 26.49% stake. WCL is represented on the board by Vipul Shiv Sahai Mathur (Chairman) and Viswanathan Hariharan Kollengode (member). Both representatives abstained from voting on the relevant board resolution.

The deal was carried out based on the principle of fair commercial dealing, under normal terms without any preferential advantages, and in full compliance with related party governance procedures.