Al-Babtain Power signs deal to buy Al-Babtain Metalogalva for SAR 8.5M

Al-Babtain Power and Telecommunication Co. signed on Oct. 3 a binding share purchase agreement (SPA) with Metalogalva-Irmãos Silva to acquire its 40% stake (8,520 shares) in Al-Babtain Metalogalva Ltd. for SAR 8.52 million.

Following the acquisition, Al-Babtain Power will hold 100% share capital of Al-Babtain Metalogalva Ltd, according to a statement to Tadawul.

The transaction will be financed through internal resources and available credit facilities. Both parties agreed to determine the value of the 8,520 shares based on shareholders’ equity as reflected in the company’s latest audited financial statements.

The transaction is subject to signing and documenting the amended Articles of Association of Al Babtain Metalogalva at the Saudi Business Center, registration of share transfer to Al Babtain Power, and the issuance of an updated commercial registration certificate.

Al-Babtain Power will also initiate procedures to convert the status of Al-Babtain Metalogalva into a national single-shareholder limited liability company, and cancel the registration of Al-Babtain Metalogalva at the Ministry of Investment.

Al Babtain Metalogalva specializes in the design and production of steel structures used in solar energy projects. The company’s financial results for the past three years are shown below: 

Al-Babtain Power noted that this acquisition is part of its strategic plan to enhance operational integration, unlock new growth opportunities, and increase its revenue and cash flows. It expects the transaction to have a positive financial impact on its 2025 results.

Metalogalva-Irmãos Silva is a related party, as it owns 75% of the capital of Petitjean S.A.S. (France) and Al-Babtain Power owns the remaining 25%.