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The board of Saudi Industrial Services Company (SISCO) has approved the acquisition of a 31.7 percent stake in UAE-based logistics investment fund Green Dome Investments from SISCO's subsidiary LogiPoint for 44.5 million riyals ($11.8 million).
The acquisition of direct equity stake is in line with SISCO's strategy to expand its presence in logistics services, the kingdom's investor in ports and terminals said on Monday.
Green Dome invests in GCC companies in the logistics sector.
"Integrating Green Dome directly into the SISCO group supports our five-year strategy to deepen our penetration of the logistics services space," said Mohammed Al-Mudarres, CEO of SISCO.
Background to the transaction
In November 2021, Green Dome acquired 100 percent of the share capital of Elite Logistics, to which SISCO's subsidiary LogiPoint, the 31.7 percent shareholder
in Green Dome, made a capital contribution of 58 million riyals.
Following the completion of the deal, Green Dome secured acquisition finance worth 42.5 million riyals, thereby reducing the equity contribution required from Green Dome's shareholders by 42.5 million riyals.
"As a result, Green Dome reimbursed 42.5 million riyals, of which LogiPoint received 13.5 million riyals, representing its 31.7 percent shareholding in Green Dome," the statement said.
(Writing by Cleofe Maceda; editing by Mily Chakrabarty)
