MBC Group’s subsidiary receives SAR 541.6M media services request

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MBC Group’s fully owned subsidiary, MBC FZ-LLC., received a service request from ARA International Productions Co. (AIP) for SAR 541.63 million ($144.44 million) excluding VAT.

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In a statement to Tadawul, the company said the request is part of an existing master services agreement between MBC FZ and AIP, disclosed earlier in the company’s prospectus.

MBC FZ, along with other subsidiaries of MBC Group, will provide a range of services under the request, including operations and broadcasting for radio stations, technical services, content production, marketing and promotion, brand development, as well as the management of television channels and digital platforms.

The service request is subject to the terms and conditions of the master services agreement signed on Aug. 1, 2018, between MBC FZ and AIP, as disclosed in the company’s prospectus.

The financial impact of the 12-month contract is expected to reflect in 2025.

AIP is a related party, as the Chairman of the board owns a 50% stake in Ara International Holding Co. alongside Istedamah Holding Co., which owns the remaining 50%. Ara International Holding, in turn, holds a stake in AIP.

The service request was made within the normal course of business without preferential terms.