MIS nods to Edarat partnering in subsidiary with 40% equity

Logo of Al Moammar Information Systems Co. (MIS)

Al Moammar Information Systems Co.’s (MIS) board approved the participation of TASI-listed Edarat Communication and Information Technology Co. as a partner in National Excellence Data Centers Co., a subsidiary.

Accordingly, MIS’ core activities in the subsidiary company will be limited to the management and operation of data center facilities, it said in a statement to Tadawul today, Oct. 7.

The new ownership structure will see MIS retain a 60% ownership stake in National Excellence Data Centers, while Edarat will hold the remaining 40% stake.

MIS board also approved increasing the share capital of National Excellence Data Centers to SAR 1 million as paid-up capital, and SAR 10 million as authorized capital.

All necessary procedures will be completed after obtaining the relevant regulatory approvals, which are expected to be finalized within one month.

It also pointed out that Edarat will pay in cash its SAR 400,000 share of the proposed capital increase. Meanwhile, MIS will cover its SAR 500,000 sum from its own resources.

MIS noted that this partnership will not affect its revenues or profits generated under the Sahayeb Data Centers project with Saudi Data Center Fund 1.

According to data available with Argaam, in July 2023, MIS board approved establishing a 100%-owned subsidiary in Riyadh, specializing in managing, operating, and marketing data centers.

MIS already owns 1.51 million shares (30% of capital) in Edarat.