Red Sea unit sells Premier Paint stake for SAR 14M

Red Sea International Co.’s subsidiary Red Sea for Building Materials and Equipment Trading Co., completed the sale as well as the transfer of its shareholding in Premier Paint Co., upon receiving the required approvals from the relevant authorities, according to a statement to Tadawul.

Share ownership in Premier Paint was transferred to Saudi Industrial Paint Co. Ltd. (SIPCO).

The initial transaction value amounted to SAR 17.3 million for 100% of Premier Paint shares. As much as 81% of shares were held indirectly by the subsidiary at a value of SAR 14.01 million, while a minority shareholder, Sherwin-Williams – Cayman Islands, holds 19% of the shares valued at SAR 3.29 million.

The transaction is aimed to strengthen the company’s financial position and liquidate its paints business segment. The relevant proceeds will be used for general operating purposes, the statement noted.

The relevant financial impact will appear in the consolidated financial statements for 2026. This will help improve liquidity levels and support the company’s strategy of focusing on more profitable investments.

The transaction value remains subject to adjustment based on the “final accounts” in accordance with the mechanism stipulated in the agreement. The final value will be announced once the final accounts report is issued, which will be expectedly approved before the end of Q1 2026.

In January 2025, Red Sea for Building Materials and Equipment Trading signed an agreement to sell its entire 81% stake in Premier Paint. The initial value of the deal was estimated at SAR 14.01 million, according to Argaam data.